S 360,000 Receivables Accounts payable Notes payable Line of credit 155,000 $ 180,000 360,000 720,000 $1,260,000 1,440,000 Inventories Total current assets Fixed assets Accruals 180,000 Total current liabilities Common stock Retained earnings Total liabilities and equity $ 696,000 1,800,000 204,000 $2,700,000 Total assets $2,700,000 Income Statement for December 31, 2018 Sales Operating costs EBIT Interest $3,600,000 3,279,720 $ 320,280 18,280 $ 302,000 Pre-tax earnings 120.800 Taxes (40%) Net income Dividends 181,200 $ 108,000 Suppose that in 2019 sales increase by 10% over 2018 sales and that 2019 dividends will increase to $120,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2018. Use an interest rate of 10%, 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. Enter your answers as positive values. Do not round intermediate calculations. Round your answers to the nearest dollar. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2019 Sales Operating costs EBIT Interest Free Pre-tax earnings Taxes (40%) Net income A AA Dividends: Addition to RE: Garlington Technologles Inc. Pro Forma Balance Statement December 31, 2019 Cash Receivables Inventories Total current assets Fixed assets Total assets Accounts payable Notes payable Accruals s Total current liabilities Common stock Retained earnings Total liabilities and equity