gs Review View Finencial Statements for Royal Corporation Actual 2013 and Pro Forma 2014 (S millions) Income Statement Balance Sheet 2013 2014 2013 2014 $47,616 $52378Cash&sccuritics 951 $1.046 5,666 6,233 4236 4,660 4048 Net sales 40,718 44.790 Accounts receivable Cost of goods sold Oher expenses 5,171 5,688 entories Depreciation expense1,000 1.100 Net fi sed assets EBIT 727 800 Total assets $14901 Intcrest expense S 215 Eamings before ax 12 585 Bank loan (short-icrm) $392 S431 7,419 8.161 Tax Net income 154 176 Accounts payable $359 $409 Long-term debt 2148 9959 Totl liabilities 102 Sharcholders' equity 4942_ Dividends paid Add to retainsd carning S269Totl liahilities& syuity In the above financial statements, Royal Corporation has prepared (incomplete) pro forma financial statements for 2014, based on actual financial statements for 2013. Royal Corp. used the percen -of-sales method assuming a sales growth rate of 10% for 2014, if capital expenditures are planned to be $1,615 in 2014, then what would be the appropriate projection for net fixed assets in 2014? 24. A $4,453 B. $4,563 C. $4,663 D. $5,663 25. Please refer to the pro forma financial statements for Royal Corporation above. If Royal Corporation plans to issue $100 in new equity in 2014, what should be the projection for shareholders' equity for 2014? A $5,349 B. $5,436 C. $5,451 D. $5,536