According to the information below and the financial statement given for year 2019, please prepare pro forma Balance sheet and Income Statement for Capstone Corporate for year 2020 to 2022

Projected Growth Rate is 10% for the next 3 years (Assume all current assets varies directlywith sales but not fixed asset. Account payables also vary with sales).

Also, suppose in the next 3 year, you've decided that your corporation will not raise any External financing, that is, after sustain the asset growth, all the extra earnings should be paid out as dividend.

There will be no change in the amount the long-term debt and common stock in the next three years either. The average interest rate is 5% on long-term debt and notes payable (in this example, the interest rate stays in same throughout the three-year planning horizon.)

Depreciation is constant and $250,000 per year throughout the three-year planning horizon, and the corporate tax rate is 34%.

Financial Statement information can be found under the Financial Statement Tab of theexcel file.

H N O S 2019 2020 2021 2022 4 Capstone Corporation 2019 Balance Sheets (in $1000) 2019 Current assets Current liabilities Cash $150 Accounts payable Accounts receivable $500 Notes payable Inventory $1,000 Total current liabilities Total current assets $1,650 Long-term debt Total liabilities Capstone Corporation 2021 Balance Sheets (in $1000) 2021 Current assets Current liabilities Cash $182 Accounts payable Accounts receivable $605 Notes payable Inventory $1,210 Total current liabilities Total current assets $1,997 Long-term debt Total liabilities Capstone Corporation 2020 Balance Sheets (in $1000) 2020 Current assets Current liabilities Cash $165 Accounts payable Accounts receivable $550 Notes payable Inventory $1,100 Total current liabilities Total current assets $1,815 Long-term debt Total liabilities P R Capstone Corporation 2022 Balance Sheets (in $1000) 2022 Current assets Current liabilities Cash $200 Accounts payable Accounts receivable $666 Notes payable Inventory $1,331 Total current liabilities Total current assets $2,196 Long-term debt Total liabilities $300 $200 $500 $1,800 $2,300 7 $330 $200 $530 $1,800 $2,330 $363 $200 $563 $1,800 $2,363 $399 $200 $599 $1,800 $2,399 8 11 Fixed assets 12 Net plant and equipment Fixed assets Net plant and equipment Fixed assets Net plant and equipment Fixed assets Net plant and equipment Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,030 $1,630 Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,165 $1,765 Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,314 $1,914 Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,477 $2,077 17 Total assets $3,930 Total liabilities and equity $3,930 Total assets $4,095 Total liabilities and equity $4,095 Total assets $4,277 Total liabilities and equity $4,277 Total assets $4,476 Total liabilities and equity $4,476 Capstone Corporation 2019 Income Statement (in $1000) Capstone Corporation 2020 Income Statement (in $1000) Capstone Corporation 2021 Income Statement (in $1000) Capstone Corporation 2022 Income Statement (in $1000) 2019 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income $250 $506 $190 $316 $107 $209 24 Sales 25 Cost of goods sold 26 Depreciation 27 Earnings before interest and taxes 28 Interest paid 29 Taxable income 30 Taxes 31 Net income 32 33 Dividends 34 Additions to retained earnings 35 36 2020 $2,310 $1,478 $250 $506 $190 $316 $107 $209 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income 2021 $2,541 $1,626 $250 $506 $190 $316 $107 $209 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income 2022 $2,795 $1,789 $250 $506 $190 $316 $107 $209 Taxes Net income Taxes Net income $104 $104 Dividends Additions to retained earnings $104 $104 Dividends Additions to retained earnings $104 $ 104 Dividends Additions to retained earnings $104 $104 37 H N O S 2019 2020 2021 2022 4 Capstone Corporation 2019 Balance Sheets (in $1000) 2019 Current assets Current liabilities Cash $150 Accounts payable Accounts receivable $500 Notes payable Inventory $1,000 Total current liabilities Total current assets $1,650 Long-term debt Total liabilities Capstone Corporation 2021 Balance Sheets (in $1000) 2021 Current assets Current liabilities Cash $182 Accounts payable Accounts receivable $605 Notes payable Inventory $1,210 Total current liabilities Total current assets $1,997 Long-term debt Total liabilities Capstone Corporation 2020 Balance Sheets (in $1000) 2020 Current assets Current liabilities Cash $165 Accounts payable Accounts receivable $550 Notes payable Inventory $1,100 Total current liabilities Total current assets $1,815 Long-term debt Total liabilities P R Capstone Corporation 2022 Balance Sheets (in $1000) 2022 Current assets Current liabilities Cash $200 Accounts payable Accounts receivable $666 Notes payable Inventory $1,331 Total current liabilities Total current assets $2,196 Long-term debt Total liabilities $300 $200 $500 $1,800 $2,300 7 $330 $200 $530 $1,800 $2,330 $363 $200 $563 $1,800 $2,363 $399 $200 $599 $1,800 $2,399 8 11 Fixed assets 12 Net plant and equipment Fixed assets Net plant and equipment Fixed assets Net plant and equipment Fixed assets Net plant and equipment Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,030 $1,630 Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,165 $1,765 Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,314 $1,914 Owners' equity $2,280 Common stock and paid-in surplus Retained earnings Total equity $600 $1,477 $2,077 17 Total assets $3,930 Total liabilities and equity $3,930 Total assets $4,095 Total liabilities and equity $4,095 Total assets $4,277 Total liabilities and equity $4,277 Total assets $4,476 Total liabilities and equity $4,476 Capstone Corporation 2019 Income Statement (in $1000) Capstone Corporation 2020 Income Statement (in $1000) Capstone Corporation 2021 Income Statement (in $1000) Capstone Corporation 2022 Income Statement (in $1000) 2019 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income $250 $506 $190 $316 $107 $209 24 Sales 25 Cost of goods sold 26 Depreciation 27 Earnings before interest and taxes 28 Interest paid 29 Taxable income 30 Taxes 31 Net income 32 33 Dividends 34 Additions to retained earnings 35 36 2020 $2,310 $1,478 $250 $506 $190 $316 $107 $209 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income 2021 $2,541 $1,626 $250 $506 $190 $316 $107 $209 Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income 2022 $2,795 $1,789 $250 $506 $190 $316 $107 $209 Taxes Net income Taxes Net income $104 $104 Dividends Additions to retained earnings $104 $104 Dividends Additions to retained earnings $104 $ 104 Dividends Additions to retained earnings $104 $104 37