Next year, UMPI Corporation is increasing its fixed assets, Plant, Property, and Equipment, by

$$4,000,000.$ The inventories will increase by $30\%,$ accounts receivable will increase by $20\%,$

and marketable securities will be reduced by $50\%$ to help finance the expansion. If all other

asset accounts remain the same and long$-$term debt will be used to finance the remaining

costs of the expansion $($no change in common stock or retained earnings$),$ prepare a pro

forma balance sheet for $2020.$ How much additional debt will be estimated using this pro

forma balance sheet?

UMPI Company

Balance Sheet

December $31,2019$

Current Assets

Current Liabilities

Accounts Payable $$$,622,000$

Other Current Liabilities $$3,268,000$

Total Current Liabilities

Long$-$term Liabilities

$$8,890,000$

Long$-$Term Debt $$1,314,000$

Other Long$-$term Liab. $$2,839,000$

Total Long$-$Term Liabilities

TOTAL LIABILITIES

$\frac{\text{\$}4,153,000}{\text{\$}13,043,000}$

Owners' Equity

TOTAL OWNERS' EQUITY

TOTAL LIABILITIES & OWNER'S EQUITY