Exhale, Inc.

$2012$ Income Statement

Net sales

$

$9,200$

Cost of goods sold

$7,600$

Depreciation

$350$

Earnings before interest and taxes

$

$1,250$

Interest paid

$35$

Taxable Income

$

$1,215$

Taxes

$480$

Net income

$

$735$

Dividends

$

$195$

Exhale, Inc.

$2012$ Balance Sheet

$2012$

$2012$

Cash

$

$3,800$

Accounts payable

$

$3,420$

Accounts rec.

$1,100$

Long$-$term debt

$350$

Inventory

$4,100$

Common stock

$

$4,200$

Total

$

$9,000$

Retained earnings

$5,830$

Net fixed assets

$4,800$

Total assets

$

$13,800$

Total liabilities & equity

$

$13,800$

Exhale, Inc., is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. In $2013,$ no new equity will be raised and sales are projected to increase by $10$ percent. Construct the pro formas for $2013($at first leave interest and long term debt unchanged$).$ Then answer the following questions.

$1.$ Projected total assets $=$ $$\_\_\_\_\_\_$

$2.$ Projected $2013$ Retained Earnings $=$ $$\_\_\_\_\_\_$

$3.$ Additional new debt required $=$ $$\_\_\_\_\_\_$