Fire Corp financial statements:

Pro forma income statement

Sales $ 32000

Costs 24400

Net income $ 7600

Pro forma balance sheet

Assets $ 25300 Debt $ 5800

Equity 19500

Total $ 25,300 Total $25,300

It expects 15% sales increase. It also predicts every item on the balance sheet will increase by 15% as well.

A) Create the pro forma statements.

B) Whats the plug variable here?

C) if Fire Corp pays half of income as dividend, cost and assets vary with sales, but not debt and equity, whats the EFN?