Below is the income statement and balance sheet for Blue Bill Corporation for 2013. Based on the historical statements and the

additional information provided, construct the firm's pro forma income statement and balance sheet for 2014.

Blue Bill Corporation
Income Statement
For the year ended 2013				Projected
	2012	2013		2014
Revenue	$60,000	$63,000
Cost of goods sold	42,000	44,100
Gross margin	18,000	18,900
SG&A expense	6,000	6,300
Depreciation expense	1,800	2,000
Earnings Before Interest and Taxes (EBIT)	10,200	10,600
Interest expense	1,500	1,800
Taxable income	8,700	8,800
Income Tax Expense	3,045	3,080
Net income	5,655	5,720
Dividends	750	800
To retained earnings	$4,905	$4,920
Additional income statement information:
Sales will increase by 5% in 2014 from 2013 levels.
COGS and SG&A will be the average percent of sales for the last 2 years.
Depreciation expense will increase to $2,200.
Interest expense will be $1,900.
The tax rate is 35%.
Dividend payout will increase to $850.
Blue Bill Corporation
Balance Sheet
December 31, 2013				Projected
	2013			2014
Current assets
Cash	$8,000
Accounts receivable	3,150
Inventory	9,450
Total current assets	20,600
Property, plant, and equipment (PP&E)	28,500
Accumulated depreciation	16,400
Net PP&E	12,100
Total assets	$32,700
Current liabilites
Accounts payable	$3,780
Bank loan (10%)	3,200
Other current liabilities	1,250
Total current liabilities	8,230
Long-term debt (12%)	4,800
Common stock	1,250
Retained earnings	18,420
Total liabilities and equity	$32,700
Additional balance sheet information:
The minimum cash balance is 12% of sales.
Working capital accounts (accounts receivable, accounts payable, and inventory) will be the same percent of sales in 2014 as they were in 2013.
$8,350 of new PP&E will be purchased in 2014.
Other current liabilities will be 3% of sales in 2014.
There will be no changes in the common stock or long-term debt accounts.
The plug figure (the last number entered that makes the balance sheet balance) is bank loan.