$$PData tablereparing financial plans for the coming year.

Information related to financial projections for next year is as follows:

$(1)$ Projected sales are $$6,005,000.$

$(2)$ Cost of goods sold last year includes $$1,003,000$ in fixed costs.

$(3)$ Operating expense last year includes $$254,000$ in fixed costs.

$(4)$ Interest expense will remain unchanged.

$(5)$ The firm will pay cash dividends amounting to $40\%$ of net profits after taxes.

$(6)$ Cash and inventories will double.

$(7)$ Marketable securities$,$ notes payable, long$-$term debt, and common stock will remain unchanged.

$(8)$ Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales.

$(9)$ A new computer system costing $$359,000$ will be purchased during the year. Total depreciation expense for the year will be $$104,000.$

$(10)$ The tax rate will remain at $40\%.$

a$.$ Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent$-$of$-$sales method.

b$.$ Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Include a reconciliation of the retained earnings account.

c$.$ Analyze these statements, and discuss the resulting external financing required.