Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes) The company has predicted a sales increase of 15 percent Assume Fire pays out half of net income in the form of a cash dividend Costs and assets vary with sales, but debt and equity do not Prepare the pro forma statements and determine the external financing needed. Income statement Sales $ 32,000 Assets $ Balance sheet 25 300 Debt $ 5.800 Costs 24,400 Equity 19,500 0 Net income 7,600 Total S 25,300 Total $ 25,300 1 12 Sales increase 15% 13 Payout rate 50% your answers. 17 18 19 20 Pro forma income statement 21 Sales X=D8+D12 22 Costs X 23 Net income X 24 25 Dividends 26 Add To RE XX 27 28 29 External financing needed 20 X Pro forma balance sheet Assets XH8 Debt Equity X Total X Total XXX