PLEASE HELP ASAP

EXCESS CAPACITY Krogh Lumber's 2016 financial statements are shown here. Krogh Lumber: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Cash Receivables Inventories Total current assets $1,800 10,800 12,600 $25,200 Accounts payable Notes payable Accrued liabilities Total current liabilities Mortgage bonds Common stock Retained earnings Total liabilities and equity $7,200 3,472 2,520 $13,192 5,000 2,000 26,608 $46,800 Net fixed assets 21,600 Total assets $46,800 Krogh Lumber: Income Statement for December 31, 2016 (Thousands of Dollars) Sales Operating costs including depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes (40%) Net income Dividends (60%) Addition to retained earnings $36,000 30,783 $5,217 1,017 $4,200 1,680 $2,520 $1,512 $1,008 a. Assume that the company was operating at full capacity in 2016 with regard to all items except fixed assets; fixed assets in 2016 were being utilized to only 67% of capacity. By what percentage could 2017 sales increase over 2016 sales without the need for an increase in fixed assets? Round your answer to two decimal places. 49 % b. 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 84% 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 10.5%. 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