Integrativelong dashPro forma statementsRed Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here LOADING... to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $ 900 comma 300. (2) The firm expects to pay $ 36 comma 000 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $ 30 comma 000. (4) Accounts receivable represent approximately 21 % of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $ 42 comma 300 will be purchased in 2020. Total depreciation for 2020 will be $ 15 comma 400. (7) Accounts payable will change directly in response to changes in sales in 2020. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. c. Analyze these statements, and discuss the resulting external financing required. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. Complete the pro forma income statement for the year ended December 31, 2020 below:(Round to the nearest dollar. Round the percentage of sales to four decimal places.) Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 (percent-of-sales method) Sales $ Less: Cost of goods sold $ % Gross profits $ Less: Operating expenses $ % Net profits before taxes $ Less: Taxes (rate = 21%) $ Net profits after taxes $ Less: Cash dividends $ To Retained earnings $ b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. Complete assets part of the pro forma balance sheet as of December 31, 2020 below:(Round to the nearest dollar.) Pro Forma Balance Sheet Red Queen Restaurants for the Year Ended December 31, 2020 (Judgmental Method) Cash $ Marketable securities $ Accounts receivable $ Inventories $ Total current assets $ Net fixed assets $ Total assets $ Complete liabilities and stockholders' equity part of the pro forma balance sheet as of December 31, 2020 below:(Round to the nearest dollar.) Pro Forma Balance Sheet Red Queen Restaurants for the Year Ended December 31, 2020 (Judgmental Method) Accounts payable $ Taxes payable $ Other current liabilities $ Total current liabilities $ Long-term debt $ Common stock $ Retained earnings $ External funds required $ Total liabilities and stockholders equity $ c. Using the judgmental approach, the external funds requirement is $ nothing. (Round to the nearest dollar.)

(Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $800,600 Less: Cost of goods sold 599,300 Gross profits $201,300 Less: Operating expenses 99,000 Net profits before taxes $102,300 Less: Taxes (rate = 21%) 21,483 Net profits after taxes $80,817 Less: Cash dividends 19,200 To retained earnings $61,617 Red Queen Restaurants Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $31,300 Accounts payable $99,800 Marketable securities 18,600 Taxes payable 20,000 Accounts receivable 149,700 Other current liabilities 5,800 Inventories 100,700 Total current liabilities $125,600 Total current assets $300,300 Long-term debt $200,700 Net fixed assets 350,900 Common stock $149,900 Retained earnings $175,000 Total assets $651,200 Total liabilities and equity $651,200