Consider the following statements:

BlackStone Corporation

Current Financial Statements (in millions of $)

Income Statement

Sales 1,000

Costs 800

Taxable income 200

Taxes (34%) (68)

Net income 132

Dividend 44

Earnings retained 88

Balance Sheet

Cash 160

A/R 440

Inventory 600

C.A. 1,200

NFA 1,800

Total Assists 3000

A/P 300

N/P 100

C.L. 400

LTD 800

C/S 800

R/E 1,000

Total L/E 3000

Sales are expected to increase by 25%.

Assumptions concerning the income statement:

Costs are a constant fraction of sales.

The tax rate is not expected to change.

Dividend payout ratio will remain constant.

You are required to prepare Pro Forma Financial Statements.