Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes):

Income Statement				Balance Sheet
Sales	$	46,500		Assets	$	20,500		Debt	$	6,500
Costs		38,780						Equity		14,000
Net income	$	7,720		Total	$	20,500		Total	$	20,500

The company has predicted a sales increase of 14 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. (Round your answers to the nearest whole dollar amount.)

Pro forma income statement			Pro forma balance sheet
Sales	$		Assets	$		Debt	$
Costs						Equity
Net income	$		Total	$		Total	$

Determine the external financing needed. (Negative amount should be indicated by a minus sign.)

External financing needed

$