3 The most recent financial statements for Hornick, Inc., are shown below (assuming no income taxes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $8,968. What is the external financing needed? 4 5 6 7 Assets $ $ Income statement Sales $ Costs Net income $ Balance sheet 21,700 Debt Equity 21,700 Total 7,600 5,180 2,420 8 9,100 12,600 21,700 9 Total $ $ 10 11 12 Next year's sales $ 8,968 13 14 Complete the following analysis. Do not hard code values in your calculations. 15 16 Percent increase in sales 17 18 19 Assets Pro forma income statement Sales Costs Net income Pro forma balance sheet Debt Equity Total 20 21 Total 22 23 External financing