Integrative Pro forma statements Provincial Imports, Inc., has assembled last year's financial statements (income statement and balance sheet preparing financial plans for the coming year. Information related to financial projections for next year is as follows: (1) Projected sales are $5,999,000. (2) Cost of goods sold last year includes $994,000 in fixed costs. (3) Operating expense last year includes $256,000 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 (8) Accounts receivable, accounts payable, and other current liabilities will change (9) A new computer system costing $351,000 will be purchased during the year. (10) The tax rate will remain at 40%. a. Prepare a pro forma income statement for next year, using the fixed cost data b. Prepare a pro forma balance sheet for next year, using the information given a c. Analyze these statements, and discuss the resulting external financing required Data table ) and financial projections for use in Sales revenue Less: Cost of goods sold Gross profits $4,990,000 2,745,000 $2,245,000 847,000 $1,398,000 207,000 Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Cash dividends To retained earnings $1,191,000 476,400 $714,600 321,570 $393,030 Taxes payable 137,709| (Click on the icon here Notes payable 210,000 Other current liabilities 5,410 Total current liabilities 1,200,673 Assets Cash Long-term debt 467,500 Common stock 73,000 Retained earnings External funds required Total liabilities and stockholders' equity in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Balance Sheet for the Year Just Ended $196,000 Liabilities and Stockholders' Equity Accounts payable $705,000 Marketable securities 224,000 Taxes payable 95,000 Accounts receivable 625,000 Notes payable 210,000 Inventories 499,000 Other current liabilities 4,500 Total current assets $1,544,000 Total current liabilities $1,014,500 Net fixed assets 1,392,000 Long-term debt 467,500 Common stock Retained earnings 73,000 1,381,000 Total assets $2,936,000 Total liabilities and equity $2,936,000