Lucas Industries has provided you with the following projections.

Create pro forma income statements and balance sheets for each of the next five years (2019-2023). Be sure to identify the external financing required for each year. YEARS: 2019 2020 2021 2022 2023 Sales growth rate (%) 7 7 6 6 5 Gross margin (%) 30 30 29 29 29 Increase in SG&A (%) 7 7 6 6 5 Increase in Dep. Expense ($)* 5 5.5 6.5 7.5 7.5 Cap. Exp. ($) * 50 55 65 75 75 Inventory Turns 7.5 7.7 7.9 8.2 8.2 DSO 22 22 21 21 20 DPO 16 16 18 18 18 Other current assets (% to sales) 0.6 0.6 0.6 0.6 0.6 Accruals (% of sales) 2.5 2.5 3 3 3 Cash (% of sales) 3 3 2 2 2 Dividends (% of net income) 10 10 10 15 15

ADDITONAL INFO.: Balance Sheet

Lucas Industries
Balance Sheets
In millions
		2016	2017	2018
Assets
Cash		$ 47.5	$ 56.6	$ 47.0
Accounts receivable		97.3	88.5	110.8
Inventory		134.7	138.5	149.5
Other current assets		8.1	8.6	9.3
Current assets		287.6	292.2	316.6
Gross fixed assets		194.3	232.1	266.1
Accumulated depreciation		(59.6)	(91.5)	(125.5)
Net fixed assets		134.7	140.6	140.6
Total assets		$ 422.3	$ 432.8	$ 457.2
Liabilities & Equity
Accounts payable		$ 39.8	$ 39.5	$ 48.3
Accruals		28.3	33.3	34.0
Notes payable		20.0	20.0	20.0
Current liabilities		88.1	92.8	102.3
Long-term debt		120.0	100.0	80.0
Common stock		110.0	110.0	110.0
Retained earnings		104.2	130.0	164.9
Total liabilities & equity		$ 422.3	$ 432.8	$ 457.2