2) Sermsuk Textile's 20xx financial statement are shown below. Sermsuk Textile: Balance Sheet as of December 31, 20xx (in thousand) Cash $1,080 Accounts payable $4,320 Accounts receivable 6,480 Accruals 2,880 Inventories 9.000 Notes payable 2.100 Total current assets $16,560 Total current liabilities $9,300 Net fixed assets 12,600 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12.860 Total assets $29,160 Total liabilities and equity $29,160 Sermsuk Textile: Income statement for December 31, 20xx (in thousand) Sales $36,000 Operating costs 32.440 Earnings before interest and taxes 3,560 Interest 460 Earnings before taxes 3,100 Taxes (40%) 1.240 Net income 1,860 Dividends (45%) 837 Addition to retained earnings $1,023 Suppose 20xy sales are projected to increase by 15% over 20xx sales. Determine the additional funds needed. Assume that the company was operating at full capacity in 20xx, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating cost are expected to increase by the same percentage as sales. Use the percent of sales method to develop a pro forma balance sheet and income statement for December 31, 20xy. Use an interest rate of 10% on the balance of debt at the beginning of the year to compute interest. Use the pro forma income statement to determine the addition to retained earnings