Please look at question P4-20 below and answer A, B, and C. Thank you.

edit some figures may be blurry in the pictures so for clarification:

To retained earnings figure is 59,000

Cash is 32,000

Accounts Receivable is 150,000

Total Assets is 650,000

b. Discuss the financing changes suggested by the statement prepared in part a. P4-20 Integrative: Pro forma statements Red Queen Restaurants wishes to prepare finan- cial plans. Use the financial statements and the other information provided below to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,000. (2) The firm expects to pay $35,000 in cash dividends in 2020. 3) The firm wishes to maintain a minimum cash balance of $30,000. (4) Accounts receivable represent approximately 18% of annual sales. 5 The firm's ending inventory will change directly with changes in sales in 2020 Et sachine costing $42,000 will be purchased in 2020. Total depreciation Vill be $17,000. Accounts payable will change directly in response to changes in sales in 2020. 18Taxes payable will equal one-fourth of the tax liability on the pro forma income Statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmen- tal approach. c. Analyze these statements, and discuss the resulting external financing required. Red Queen Restawrats fucome Statement for the war Fadecember 11, 2019 0.000 300.000 100000 100.000 Myronin ne over Nel Quem Restaurants Balance December 31, 2019 Tbilities and stockholders' equity counts payable $100,000 IN parable her current liabilities 5.000 Total current liabilities $125,000 ong-term debt Total liabilities $325.000 lummon stock 150.000 Neained earnings 105.000 Total liabilities and stockhollen nun