Data table Red Queen Restaurants Income Statement for the Year Just Ended Sales revenue $799,300 Less: Cost of goods sold 600,200 Gross profits $199,100 Less: Operating expenses 99,900 Net profits before taxes $99,200 Less: Taxes (rate=40%) Net profits after taxes 39,680 $59,520 19,500 $40,020 Less: Cash dividends To retained earnings (Click on the icon here Assets Cash in order to copy the contents of the data table below into a spreadsheet.) Red Queen Restaurants Balance Sheet for the Year Just Ended Marketable securities Accounts receivable Liabilities and Stockholders' Equity $31,900 Accounts payable $101,000 17,300 Taxes payable 19,200 149,500 Other current liabilities 5,100 Assets Red Queen Restaurants Balance Sheet for the Year Just Ended Liabilities and Stockholders' Equity Cash $31,900 Accounts payable $101,000 Marketable securities 17,300 Taxes payable 19,200 Accounts receivable 149,500 Other current liabilities 5,100 Inventories 100,300 Total current liabilities $125,300 Total current assets $299,000 Long-term debt $197,400 Net fixed assets 349,700 Common stock $151,000 Retained earnings $175,000 Total assets $648,700 Total liabilities and equity $648,700 Integrative Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here financial data are also available for next year (1) The firm has estimated that its sales will be $899.000 (2) The firm expects to pay $35,900 in cash dividends (3) The firm wishes to maintain a minimum cash balance of $31,700 (4) Accounts receivable represent approximately 24% of annual sales (5) The firm's ending inventory will change directly with changes in sales (6) Red Queen will purchase new machine costing $42.200 and have total depreciation of $15,300 () Accounts payable will change directly in response to changes in sales (B) 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 next year, uning the percent-of-sales method b. Prepare a pro forma balance sheet for next year, using the judgmental approach c. Analyze these statements, and discuss the resulting external financing required a. Prepare a pro forma income statement for next year, using the percent-of-sales method to prepare the financial plans. The following Red Queen Restaurants $ % $ $ % Sales (percent-of-sales method) Less: Cost of goods sold Gross profits Less: Operating expenses Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes 69 $ 69 $ 69 69 Less: Cash dividends 69 $ To Retained earnings $ b. Prepare a pro forma balance sheet, using the judgmental approach. b. Prepare a pro forma balance sheet, using the judgmental approach. Complete assets part of the pro forma balance sheet below: (Round to the nearest dollar.) Pro Forma Balance Sheet Red Queen Restaurants (Judgmental Method) Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets 6959 SA 69 69 $ SA Complete liabilities and stockholders' equity part of the pro forma balance sheet below: (Rour Pro Forma Balance Sheet Red Queen Restaurants (Judgmental Method) Accounts payable Taxes payable Other current liabilities Total current liabilities Long-term debt $ $ Common stock Retained earnings External funds required Total liabilities and stockholders' equity $ c. Using the judgmental approach, the external funds requirement is $ (Round to the nearest dollar.)