PLEASE EXPLAIN

S04-02 Pro Forma Statements and EFN [LO1, 2] Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes): The company has predicted a sales increase of 15 percent. Assume Wesney pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.) Determine the external financing needed. (Input all amounts as positive values. Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.)