Assume ABC Company has asked you to not only prepare their 2013 year-end Balance Sheet but to also provide pro-forma financial statements for 2014. In addition, they have asked you to evaluate their company based on the pro-forma statements with regard to ratios. They also want you to evaluate 3 projects they are considering. Their information is as follows:

End of the year information:

Account	12/31/13 Ending Balance
Cash	160,000
Accounts Receivable	126,000
Inventory	75,200
Equipment	745,000
Accumulated Depreciation	292,460
Accounts Payable	36,900
Short-term Notes Payable	18,300
Long-term Notes Payable	157,225
Common Stock	450,000
Retained Earnings	solve

Additional Information:

• Sales for December total 12,000 units. Each month