Income Statement

Sales$650,000

- COGS507,000

GrossProfits$143,000

- Expenses-91,000

EBIT$52,000

-Interest$12,800

EBT$39,200

- Taxes$9,408

EAT$29,792

Balance Sheet

Currentliabilities$80,000

CurrentAssets$136,500L-TDebt$160,000

FixedAssets563,500Equity460,000

TotalAssets700,000Total Liabilities

&Equity$700,000

The firm expects that sales will increase by 14 percent, COGS will remain at their same percentage of sales as now and that expenses will decrease by 2% from their current percentage of sales.Current assets are expected to rise by 5% from their current percentage of sales while fixed assets will rise by $100,000.No sale of stock is expected.Interest will only be on long-term debt, which is expected to rise by $20,000, and will be at a 9% rate.Taxes will be at the same rate as 2018.No dividends are paid and any shortfalls should be made up in current liabilities.

2019 pro forma income statement and balance sheet, properly labeled.