Prepare a pro forma income statment for 2016. Assume that the sales increase to $87 million as a result of the plant expansion. Also assume that the cost of sales and selling and administrative expense rations (as a percentage of sales) remian constant. Finally, assume that interest expense and the firm's tax rate remain the same in 2016.

TABLE 160.1 Anderson Furniture Company's Financi urniture Company's Financial Data (in Thousands of Dollars) Industry Average Balance Sheet as of December 31, 2015 5.0% 21.6 6.5% 26.3 35.5 68.3% 31.7 100.0% 33.4 60.0% 40.0 100.0% 5.3% 6.6 11.8% 31.6 56.6 100.0% 7.0% 10.0 17.0% 28.0 55.0 100.0% Assets $ 3,690 Cash 15,000 Receivables, net 20,250 Inventories $38,940 Total current assets 18,060 Net fixed assets $57,000 Total assets Liabilities and stockholders' equity $ 3,000 Accounts payable 3,750 Notes payable (8%) $ 6,750 Total current liabilities 18,000 Long-term debt (10%) 32,250 Stockholders' equity Total liabilities and equity $57,000 Income Statement for the Year Ended December 31, 2015 Net sales (all on credit) $75,000 Cost of sales 60,750 60,750 Gross profit $14,250 0 Selling and administrative expenses 7.500 Earnings before interest and taxes $ 6,750 on Interest expense 2,100 Earnings before taxes $ 4,650 Income taxes (45.16%) 2,100 Earnings after taxes $ 2,550 100.0% 81.0 19.0 10.0 9.0 2.8 6.2 3.4% Anderson 5.76 2.77 73.00 Significant ratios Current Quick Average collection period (days) Inventory turnover (Cost of sales/inventory) Sales to total assets Debt to equity Times interest earned Earnings after tax/sales Earnings after tax/equity Industry Average 3.50 1.60 58.803 3.50 3.00 1.60 1.30 0.80 3.20 3.40% 7.90% 0.90 4.70 2.40% 7.90%