Now suppose 2017 sales increase by 25% over 2016 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 85% 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 2017 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 11%. 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? Round your answers to the nearest hundredth of thousand of dollars.

Krogh Lumber Pro Forma Income Statement December 31, 2017 (Thousands of Dollars)
	2016		2017
Sales	$36,000		$
Operating costs (includes depreciation)	30,783
EBIT	$5,217		$
Interest expense	1,017
EBT	$4,200		$
Taxes (40%)	1,680
Net Income	$2,520		$
Dividends	$1,512		$
Addition to RE	$1,008		$

Krogh Lumber Pro Forma Balance Statement December 31, 2017 (Thousands of Dollars)
	2016		2017
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		$