Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.

[Hint: I recommend you copy this problem to a Word document or Excel document and print it out so that you can work with it in a reasonable manner.]

XYZ Corporation published the following information in its financial statements for its 2018 annual report:

Income Statement Items:
Sales	$76,000
- Cost of goods sold	49,000
Gross profit		27,000
- Cash Operating expenses	$9,000
- Depreciation	2,000
Total Operating Expenses		11,000
EBIT		16,000
- Interest expense		840
EBT		15,160
- Income tax expense		5,306
Net Income		$9,854

Balance Sheet Items:
Cash	$9,000
Marketable securities	2,000
Accounts receivable	11,000
Inventories	7,000
Fixed Assets, net	24,000
Total Assets	$53,000
Accounts payable	$8,000
Accrued payables	3,000
Bonds payable	12,000
Common stock	16,000
Retained earnings	14,000
Total Liabilities and Equity	$53,000

• Sales in 2019 are estimated to be $90,000.
• $5,000 of the cash operating expenses for 2018 are considered variable costs, and the remainder are fixed costs.
• Depreciation and the remainder of cash operating expenses are considered to be fixed costs.
• Cash, accounts receivable, inventories, accounts payable, and accrued payables are considered to be spontaneous items.
• Marketable securities, net fixed assets, bonds payable, and common stock are discretionary.
• $5,000 of bonds payable at the end of 2018 are considered "current liabilities," and will be repaid on January 1, 2019. The interest rate on the bonds for 2019 will remain the same as it was in 2018.
• The company will purchase fixed assets of $3,600 in 2019, but overall depreciation for 2019 will remain the same dollar amount as it was for 2018.
• The firm paid a dividend of $3,942 in 2018, and will maintain its 2018 dividend payout ratio for 2019.
• The income tax rate for 2019 is expected to be the same as it was in 2018.

Required:

Prepare the pro-forma 2019 income statement and balance sheet for XYZ Corporation.