5. You work for Wirl Wind Company as a financial analyst and trying to plan for the next year. Using the current income statement and balance sheet given below: $3,028,500 1,350,000 1,260,600 $ 417,900 Income Statement Wirl Wind Company Sales revenue Less: Cost of goods sold Fixed costs Variable costs Gross profits Less: Operating expenses Fixed expenses Variable expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (40%) Net profits after taxes Less: Dividend Increased retained earnings 4,500 85,840 $ 327,560 82,150 $ 245,410 98,164 $ 147,246 50,000 $ 97,246 $ 625,000 298,000 580,000 496,000 $1,999,000 Balance Sheet Wirl Wind Company Assets Current assets Cash Marketable securities Accounts receivable Inventories Total current assets Land and building $625,000 Machinery & equip 765,000 Fixtures & Furn 110,000 Total gross fixed assets Less: Accumulated Depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Notes payable Accruals Total current liabilities Total Long-term debt Total liabilities Stockholders' equity Preferred stock Common stock Paid-in-capital Retained earnings Total stockholders' equity Total liabilities and stockholders equity $1,500,000 30,000 $1,470,000 $3,469,000 $ 267,000 135,000 288,000 $ 690,000 1,200,000 $1,890,000 79,000 750,000 601,000 149,000 $1,579,000 $3,469,000 The additional information provided, prepare the company's pro forma statements. Sales are projected to increase by 15 percent. Total of $75,000 in dividends will be paid. A minimum cash balance of $650,000 is desired. A new asset for $50,000 will be purchased. Depreciation expense for next year is $50,000. Marketable securities will remain the same. Accounts receivable, inventory, accounts payable, notes payable, and accruals will increase by 15 percent. $30,000 new issue of bond will be sold. No new stock will be issued