Problem 12-09 Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 $ 180,000 Accounts payable $ 350,000 Receivables 360.000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total $1,260.000 Accruals 180,000 current assets Fixed 1,440,000 Total current $ 696,000 assets liabities Common stock 1,600,000 Retained eamings 204,000 Total $2,700,000 Total liabilities and $2,700,000 essels equity Income Statement for December 31, 2016 Sales $3,600,000 Operating 3,279,720 costs EBIT $ 320,280 Interest 18,280 Pre-tax $ 302,000 earnings Taxes (40%) 120,000 Net income 181,200 Dividends $100,000 Suppose that in 2017 sales increase by 20% over 2016 sales and that 2017 dividends will increase to $190,000. Forecast the finandal statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations. and assume that any new debt will be added at the end of the year (so forecast the Garlington Techno December 31, 2017