Assets $($in millions$)$ Liabilities $($in millions$)$

Cash $300$ Accounts payable $50$

Accounts receivable $100$ Notes payable $150$

Inventories $200$ Total Current Liabilities: $200$

Total Current Assets: $600$ Long Term Debt $100$

Equipment $300$ Total Liabilities: $300$

Land $100$ Common Stock $300$

Total Fixed Assets: $400$ Retained Earnings $400$

Total Assets: $1000$ Total Common Equity $700$

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You are asked to prepare a pro forma balance sheet given the following information.

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Net earnings are expected to be $$100$ million.

The company wants to reduce inventory to $$150$ million.

The company wants to return $$100$ million to shareholders in addition to the $$10$ million dividend payment it has made the last two years.

The company$$s debt $($long$-$term and notes payable$)$ will remain the same as well as the common stock.

All other changes to the balance sheet are reflected in cash.

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You will project total assets to be:

$990$

$1000$

$1100$

$1110$