Krogh Lumber's 2021 financial statements are shown here.

Krogh Lumber: Balance Sheet as of December 31, 2021 (thousands of dollars)
Cash	$1,800		Accounts payable	$7,200
Receivables	10,800		Accrued liabilities	2,520
Inventories	12,600		Notes payable	3,472
Total current assets	$25,200		Total current liabilities	$13,192
			Mortgage bonds	5,000
Net fixed assets	21,600		Common stock	2,000
			Retained earnings	26,608
Total assets	$46,800		Total liabilities and equity	$46,800

Krogh Lumber: Income Statement for December 31, 2021 (thousands of dollars)
	Sales	$36,000
	Operating costs including depreciation	30,783
	Earnings before interest and taxes	$5,217
	Interest	1,017
	Earnings before taxes	$4,200
	Taxes (25%)	1,050
	Net income	$3,150
	Dividends (60%)	$1,890
	Addition to retained earnings	$1,260

1. Assume that the company was operating at full capacity in 2021 with regard to all items except fixed assets; fixed assets in 2021 were being utilized to only 60% of capacity. By what percentage could 2022 sales increase over 2021 sales without the need for an increase in fixed assets? Round your answer to two decimal places. %
2. Now suppose 2022 sales increase by 25% over 2021 sales. Assume that Krogh cannot sell any fixed assets. All assets other than fixed assets will grow at the same rate as sales; however, after reviewing industry averages, the firm would like to reduce its operating costs/sales ratio to 83% and increase its total liabilities-to-assets ratio to 42%. The firm will maintain its 60% dividend payout ratio, and it currently has 1 million shares outstanding. The firm plans to raise 35% of its 2022 forecasted interest-bearing debt as notes payable, and it will issue bonds for the remainder. The firm forecasts that its before-tax cost of debt (which includes both short- and long-term debt) is 10%. Any stock issuances or repurchases will be made at the firm's current stock price of $40. Develop Krogh's projected financial statements. What are the balances of notes payable, bonds, common stock, and retained earnings? Enter your answers in thousands of dollars. For example, an answer of $10 thousands of dollars should be entered as 10,000. Round your answers to two decimal places.

Krogh Lumber: Pro Forma Income Statement December 31, 2022 (thousands of dollars)
	2021		2022
Sales	$36,000		$
Operating costs (includes depreciation)	30,783
EBIT	$5,217		$
Interest expense	1,017
EBT	$4,200		$
Taxes (25%)	1,050
Net Income	$3,150		$
Dividends	$1,890		$
Addition to RE	$1,260		$

Krogh Lumber: Pro Forma Balance Statement December 31, 2022 (thousands of dollars)
	2021		2022
Assets
Cash	$1,800		$
Accounts receivable	10,800
Inventories	12,600
Fixed assets	21,600
Total assets	$46,800		$
Liabilities and Equity
Payables + accruals	$9,720		$
Short-term bank loans	3,472
Total current liabilities	$13,192		$
Long-term bonds	5,000
Total liabilities	$18,192		$
Common stock	2,000
Retained earnings	26,608
Total common equity	$28,608		$
Total liab. and equity	$46,800		$