a. Suppose that in 2022 sales increase by 10% over 2021 sales and that 2022 dividends will increase to $112,000. Construct the pro forma financial statements using the forecasted financial statement mothod. Assume the firm operated at full capacity in 2021 . Use an interest rate of 13%, and assume that any new debt wil be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year), Cash does not earn any interest income. Assume that the AFN will be in the form of notes payable. - See incorese statemens. b. Bebow is same adstional information on Garingtan Garlington Technologies Inc's 2021 financial statements are shown below. Garlington Technologies Inc.: Income Statement for December 31, 2021 Earnings per share =5 Dividends per share =$ II. Because of an agreement with their lender, Gartington's current ratio cannot drop below 4.7 or it wal vialate a debt covenant. How much can the company increase its notes payable and still not vialate its minimum current ratio? increase in notes payable =5 114. Assume that Garlington increases its notes aayabie to the maximum allowod under its current ratio festriction and issues stock (at the beginning of the year) to raise the remaining funds required. Calculate the compacry's ROE, EPS, and DPS. ROE = EPS =5 DPS =3 IV. Mecaiculate Garlington's ROE, EPE, and DPS if as the additional firahcing was obtained through the sale of new common stock ROE - EPS = - Des =s