Hill Country's balance sheet and income statement for 2020 are given below: The firm set the following objectives for 2021: 1) Accounts receivables and inventory balances will continue their historical relationships with sales and cost of goods sold, respectively. It wants to double its cash holdings. 2) Its gross margin is expected to increase from 20% to 22%. 3) Accounts payable would decline to 4% of cost of goods sold. 4) The firm will invest $10 million to expand its warehouse. This will lead to a depreciation expense of $7 million in 2021. 5) The firm will initiate a total common stock dividend of $1.2 million in 2021. 6) Operating expenses remain at 10% of sales. 7) The firm will not retire any long-term debt. and is willing to borrow up to $20 1) Accounts receivables and inventory balances will continue their historical relationships with sales and cost of goods sold, respectively. It wants to double its cash holdings. 2) Its gross margin is expected to increase from 20% to 22%. 3) Accounts payable would decline to 4% of cost of goods sold. 4) The firm will invest $10 million to expand its warehouse. This will lead to a depreciation expense of $7 million in 2021. 5) The firm will initiate a total common stock dividend of $1.2 million in 2021. 6) Operating expenses remain at 10% of sales. 7) The firm will not retire any long-term debt, and is willing to borrow up to $20 million if needed. Interest rate on debt is 8%. 8) Sales target for 2021 is $200 million. Develop a pro-forma income statement for 2021 ( 10 points) Develop a pro-forma balance sheet for 2021 (10 points)