Financing Deficit Garlington Technologies Inc.'s 2018 financial statements are shown below: Balance Sheet as of December 31, 2018 Cash $ 180,000 Accounts payable $360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2018 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2019 sales increase by 20% over 2018 sales and that 2019 dividends will increase to $160,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2018. Use an interest rate of 11%, and assume that any new debt will be added at the end of the year (so forecast ng of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Enter your answers as positive values. Do not round intermediate calculations. Round your answers to the nearest dollar. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2019 Sales $ 4,320,000 Operating costs $ 3,935,664 EBIT 384,336 Interest 20,291 Pre-tax earnings 364,045 Taxes (40%) 145,618 Net income 218,427 Dividends: 160,000 Addition to RE: 58,427 Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2019 Cash 216,000 Receivables 432,000 Inventories 864,000 Total current assets 1,512,000 Fixed assets 1,728,000 Total assets 3,240,000 Accounts payable 432,000 Notes payable 156,000 Accruals 216,000 $ Total current liabilities Common stock Retained earnings Total liabilities and equity 804,000 1,800,000 262,427 2,866,427 $ $