• Sales will increase by 25 percent.
• The dividend payouts will increase from 40 percent to 55 percent.
• Variable costs will be 5 percentage points less than the original percentage of sales.

Income Statement
	2018	Est. 2019
Sales	1,000	1,250
Variable Costs	500	563
Fixed Costs	160	160
Net Income	340	527
Dividends	136	290

Now consider the company's 2018 Balance Sheet:

Balance Sheet
	2018	Est. 2019
Cash	2,000
Accounts Receivable	800
Inventory	500
Plant and Equipment	3,000
Total Assets	6,300
Accounts Payable	300
Notes Payable	200
Long Term Debt	5,000
Total Liabilities	5,500
Common Stock	500
Retained Earnings	300
Total Equity	800

Balance Sheet assumptions for 2019:

• No additional Fixed Assets will be purchased.
• 2018 Notes Payable will be paid off at the end of that year.
• No additional Common Stock will be issued.

1. Calculate the 2019 Balance Sheet projections, completing the above table on the WORKSHEET (round to the nearest dollar for each item) (24 pts.)
2. Calculate the Additional Funds Needed for 2019 based upon the Pro Forma Balance Sheet, entering your answer below (rounded to the nearest dollar) (6 pts.)