Can you provide step by step answers and there are two more parts to the questions b and c but I can't take picture of it until this one is done

to prepare the financial plans. The Integrative Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,900. (2) The firm expects to pay $35,900 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $31,800. (4) Accounts receivable represent approximately 22% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $42,900 will be purchased in 2020. Total depreciation for 2020 will be $16,400. (7) Accounts payable will change directly in response to changes in sales in 2020. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. c. Analyze these statements, and discuss the resulting external financing required. e Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $799,400 Less: Cost of goods sold 599,700 Gross profits $199,700 Less: Operating expenses 99,900 Net profits before taxes $99,800 Less: Taxes (rate = 21%) 20,958 Net profits after taxes $78,842 Less: Cash dividends 19,400 To retained earnings $59,442 Red Queen Restaurants Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $32,800 Accounts payable $99,400 Marketable securities 17,700 Taxes payable 19,300 Accounts receivable 150,300 Other current liabilities 5,700 Inventories 100,400 Total current liabilities $124,400 Total current assets $301,200 Long-term debt $201,800 Net fixed assets 350,200 Common stock $150,200 Retained earnings $175,000 Total assets $651,400 Total liabilities and equity $651,400 Sales $ $ % Less: Cost of goods sold Gross profits $ Less: Operating expenses $ II % Net profits before taxes $ Less: Taxes (rate = 21%) $ Net profits after taxes $ Less: Cash dividends $ To Retained earnings $