Income Statement for December 31, 2019 Sales $4,000,000 Operating costs 3,200,000 EBIT $ 800,000 Interest 120,000 Pre-tax earnings $ 680,000 Taxes (25%) 170,000 Net income 510,000 Dividends $ 190,000 Balance Sheet as of December 31, 2019 Cash $ 160,000 Accounts payable Receivables 360,000 Line of credit Inventories 720,000 Accruals Total CA $1,240,000 Total CL Fixed assets 4,000,000 Long-term bonds Total Assets $5,240,000 Common stock $ 360,000 0 200,000 $ 560,000 1,000,000 1,100,000 RE 2,580,000 Total L&E $5,240,000 Suppose that in 2020 sales increase to $4.4 million and that 2020 dividends will increase to $114,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2019. The long-term bonds have an interest rate of 14%. New financing will be with a line of credit. Assume it will be added at the end of the year. Cash does not earn any interest income. 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, 2020 Sales 69 $ 4,200,000 Operating costs $ 3,200,000 EBIT $ 1,000,000 Interest $ 1,40,000 Pre-tax earnings $ 860,000 Taxes (25%) $ 215,000 Net income $ 645,000 Dividends: $ 228,000 $ $ Addition to RE: 417,000 Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2020 Cash $ 500,000 Receivables $ 360,000 Inventories $ 720,000 Total current assets $ 1,580,000 Fixed assets $ 4,000,000 Total assets $ 5,580,000 Accounts payable 360,000 20,000 Line of credit $ Accruals 200,000 Total current liabilities $ 580,000 LT bonds $ 1,000,000 Common stock $ 1,100,000 Retained earnings $ 2,900,000 Total L&E $ 55,800,000