2) Below are the 2020 Financial statements for Bercelo Inc.

Bercelo Inc 2020 Income Statement
Net sales	6080
Less: Cost of Goods Sold	-3,890
Less: Depreciation	-$860
Earnings before interest and taxes	$1,330
Less: Interest paid	-$270
Taxable Income	$1,060
Less: Taxes	-$360
Net Income	$700

	Bercelo Inc Balance Sheet 200
cash	$560
Accounts Receivable	$840
Inventory	$1,390
Total	$2,790
Net Fixed Assets	$4,660
Total Assets	$7,450

Accounts Payable	$610
Notes Payable	$50
Total	$660
Long-term Debt	$3,480
Common Stock	$2,250
Retained Earnings	$1,060
Total Liabilities and owners' equity	$7,450

a) Assume that Bercelo Inc. is operating at full capacity. The dividend payout ratio is constant at 50% of income. Tanya, the financial manager, is forecasting sales will increase by 15% for 2021. Prepare the Pro-forma Income Statement for 2021. (4 Marks)

b) Prepare the Pro-forma Balance Sheet for 2021. (5 marks)

c) What is the external Financing Needed (EFN)? (2 marks)