Morrisey Technologies Inc. s 2019 financial statements are shown below:

Cash	$ 180,000	Accounts payable	$ 360,000
Receivables	360,000	Notes payable	156,000
Inventories	720,000	Accrued liabilities	180,000
Fixed assets	1,440,000	Common stock	1,800,000
		Retained earnings	204,000

Sales	$3,600,000
Operating costs	3,279,720
Interest	20,280
Tax rate	40%
Price per share	$24.00
Earnings per share (EPS)	$1.80
Dividends per share (DPS)	$1.08

Suppose that in 2020 sales increase by 10% over 2019 sales and that 2020 DPS will increase to $1.12. Construct the projected financial statements for 2020. Use AFN to balance the pro forma balance sheet. How much additional capital (AFN) will be required (assume that it will be obtained at the end of the year, giving the interest expense for 2020 remain unchanged)? Assume the firm operated at full capacity in 2019.

Tip: Instead of using the AFN formula, you need to prepare the projected income statement first, then determine the amount of increase in R/E, and prepare a projected balance sheet with the balancing figure be the AFN (added to the notes payable).