480 Part 5: Corporate Valuation and Governance Garlington Technologies Inc.'s 2010 financial statements are shown below: Bolance Sheet os of December 31. 2010 (12-9) Addirional Funds Needed s 180,000 Accounts payable 360,000Notes payable Cash Receivables Inventories 1560 720,000 Accruals Total current liabilities S G Total current assets Fixed assets $1,260,000 1,800,0 1,440,000 Common stock Retained earnings 220 Total liabilities and equity Total assets Income Statement for December 31. 2010 S3,600,000 S 320,280 S 302,000 Sales Operating costs EBIT Interest EBT Taxes (40%) Net income Dividends 120,800 S 108,000 Suppose that in 2011 sales increase by 10% over 2010 sales and that 2011 dividends will increase to S112,000. Forecast the financial statements using the forecaste financial statement method. Assume the firm operated at full capacity in 2010. Uk an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the AFN will be in the form of notes payable