I have done this assignment, it is due in 12 hours I want to confirm if it is correct.

1. Consider the following simplified financial statement

Income statement			Balance sheet
Sales	$ 39,400			Assets	$ 29,200	Debt	$ 9,400
Costs	34,700					Equity	19,800
Net income	$ 4,700			Total	$ 29,200	Total	$ 29,200

The company has predicted a 15% sales increase. It has indicated that every item on the balance sheet will increase by 15%. Create the pro forma statements. What is the plug variable for balancing the balance sheet?

1. Question 1 assumes that the company pays out 50% of net income as cash dividends to shareholders. Considering that costs and assets vary with sales, but debt and equity do not. Create the pro forma financial statements and determine the external financing needed.

1. Consider the following income statement for the Redrum Company:

Income Statement
Sales		$ 53,000
Costs		40,900
Taxable income		$ 12,100
Taxes (22%)		2,662
Net income		$ 9,438
Dividends	$ 3,500
Addition to RE	$ 5,938

The company projects a 20% sales growth next year. Assuming costs vary with sales and the dividend payout ratio is constant. Prepare a pro forma income statement. What is the projected addition to retained earnings (RE)?

1. Continue question 3 above. Below is the balance sheet for the Redrum company.

Balance Sheet
Assets		Liabilities and Owner's Equity
Current assets	$	%Sales	Current liabilities	$	%Sales
Cash	$ 3,140		Accounts payable	$ 2,600
Accounts Receivable	4,200		Notes payable	5,700
Inventory	6,500		Total				$ 8,300
Total	$ 13,840		Long-term debt		$ 28,000
Fixed assets
Net plant &equipment	$ 43,200		Owners' equity
			Common stock	$ 5,000
			Retained earnings	15,740
			Total				$ 20,740
			Total liabilities and
Total assets	$ 57,040			Owners' equity	$ 57,040

Assuming accounts payable vary with sales but notes payable do not. Under the percentage of sales approach, fill in the two highlighted columns under "%Sales". Use "n/a" if that account doesn't vary with sales.

1. Based on the information in Question 3 and 4, prepare a pro forma balance sheet showing external financing needed. Assuming a 20% sales growth next year, no new external debt or equity financing, and a constant payout ratio.