part 1

part 2

Garlington Technologies Inc.'s 2018 financial statements are shown below: Balance Sheet as of December 31, 2018 Cash $ 360,000 156,000 Receivables $ 180,000 360,000 720,000 $1,260,000 Accounts payable Notes payable Line of credit Accruals Inventories Total current assets 180,000 Fixed assets 1,440,000 $ 696,000 1,800,000 Total current liabilities Common stock Retained earnings Total liabilities and equity 204,000 Total assets $2,700,000 $2,700,000 Income Statement for December 31, 2018 Sales Operating costs EBIT $3,600,000 3,279,720 $ 320,280 Interest 18,280 $ 302,000 Pre-tax earnings Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2010 sales increase by 15% over 2018 sales and that 2019 dividends will increase to $174,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2018. Use an interest rate of 10%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not eam any interest income. Assume that the all new-debt will be in the form of a line of credit Enter your answers as positive values. Do not found intermediate calculations. Round your answers to the nearest dollar Garlington Technologies Inc. Pro Forma Income Statement December 31, 2019 Sales Operating costs EBIT Interest Pre-tax earnings Taxes (40%) Net income Dividends Addition to RE: Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2019 Cash Receivables Inventories Total current assets Fixed assets Total assets Accounts payable Notes payable Accruals Total current liabilities Common stock Retained earnings Total liabilities and equity