Inhale, Inc., is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. In $2019,$ no new equity will be raised and sales are projected to increase by $10$ percent. Construct the pro formas for $2019($at first leave interest and long term debt unchanged$).$ Then answer the following questions.

Projected total assets $=$ $$\_\_\_\_\_\_$

Hint: Divide each quantity on the left$-$hand side of the $2018$ Balance Sheet by the $2018$ Sales to compute the percentages of sales. New sales in $2019$ will be $10\%$ higher than in $2018,$ so compute sales for $2019.$ Apply the percentages you computed for $2018$ to the new sales number for $2019$ to construct each line item on the Balance Sheet for $2018.$ Read off the Total Assets at the bottom.

Projected $2013$ Retained Earnings $=$ $$\_\_\_\_\_\_$

Hint. Proceed by constructing the Income Statement for $2019.$ Start with the new Sales $(10\%$ higher than $2012).$ Compute Cost of Goods Sold and Depreciation as percentages of sales in $2018$ and apply the same percentages to $2019$ Sales to get CoGS and Depr for $2019.$ When you get to taxes, things will be different. Compute the Taxes for $2018$ as $\%$ of Taxable Income, not Sales, for $2018.$ Apply the same percentage to the $2019$ Taxable Income to get Taxes for $2019.$ Similarly, compute Dividends for $2018$ as $\%$ of $2018$ Net Income, not Sales. Apply that percentage to the $2019$ Net Income to get $2019$ Dividends. The Addition to the Retained Earnings for $2019$ is equal to the Net Income minus Dividends. Add the Addition to RE to the $2018$ Retained Earnings from the $2018$ Balance Sheet and you have the new $2019$ Retained Earnings.

Additional new debt required $=$ $$\_\_\_\_\_\_$

$2018$ Income Statement