Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,700. (2) The firm expects to pay $34,700 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $30,100. (4) Accounts receivable represent approximately 18% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $43,000 will be purchased in 2020Total depreciation for 2020 will be $16,400. (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, 2020using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020using the judgmental approach. c. Analyze these statements, and discuss the resulting external financing required. Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Red Queen Restaurants Balance Sheet December 31, 2019 \begin{tabular}{lrlr} Assets & & \multicolumn{2}{l}{ Liabilities and Stockholders' Equity } \\ \hline Cash & $31,000 & Accounts payable & $100,400 \\ Marketable securities & 17,900 & Taxes payable & 19,400 \\ Accounts receivable & 150,600 & Other current liabilities & 4,400 \\ Inventories & 100,600 & Total current liabilities & $124,200 \\ \multicolumn{1}{r}{ Total current assets } & $300,100 & Long-term debt & $200,500 \\ Net fixed assets & 350,000 & Common stock & $150,400 \\ \cline { 2 - 2 } Total assets & & Retained earnings & $175,000 \\ \hline \end{tabular}