Information related to financial projections for next year is as follows:

$(1)$ Projected sales are $$6,006,000.$

$(2)$ Cost of goods sold last year includes $$996,000$ in fixed costs.

$(3)$ Operating expense last year includes $$257,000$ in fixed costs.

$(4)$ Interest expense will remain unchanged.

$(5)$ The firm will pay cash dividends amounting to $45\%$ of net profits after taxes.

$(6)$ Cash and inventories will double.

$(7)$ Marketable securities$,$ notes payable, long$-$term debt, and common stock will remain unchanged.

$(8)$ Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales.

$(9)$ A new computer system costing $$357,000$ will be purchased during the year. Total depreciation expense for the year will be $$115,000.$

$(10)$ The tax rate will remain at $40\%.$

a$.$ Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent$-$of$-$sales method.

b$.$ Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Include a reconciliation of the retained earnings account.

c$.$ Analyze these statements, and discuss the resulting external financing required.

a$.$ Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent$-$of$-$sales method.

Complete the pro forma income statement for next year below: $($Round to the nearest dollar.$)$

Pro Forma Income Statement

Provincial Imports, Inc.

for Next Year

$($percent$-$of$-$sales method$)$

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

Provincial Imports, Inc. Income Statement

for the Year Just Ended

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

Provincial Imports, Inc. Balance Sheet

for the Year Just Ended