Show changes to the 2012 pro forma balance sheet assuming the company borrows the necessary funds for the capital improvements at an interest rate of 7 percent. Ignore depreciation on the new equipment. Enter your calculations in the table provided below.

Assets	Calculations	Liabilities and Owners Equity	Calculations
Cash and Marketable Securities		Notes payable
Accounts Receivable		Accounts payable
Inventory		Accrued expenses
Current Assets		Current liabilities
Gross Fixed Assets		Long-term debt
Accumulated Depreciation		Common Stock ($10 par)
Net fixed assets		Retained earnings
Total assets		Total liabilities and owners equity

Price earnings ratio

16

current ratio

1.8

quick ratio

0.6

total debt ratio

53

total asset turnover ratio

1.5

return on equity

8

return on sales

2.5

Average collection period

27

Assets			Liabilities and equity
Cash anf marketbale securities	16,000		Notes paybale	0
acoounts receivable	16,000
invenotry	23,000		Accounts paybale	19,500
current assests	55,000
gross fixed assets	52,000		accrued	6,000
accmulated depreciation	-12,000		current liabilties	25,500
			long term debt	0
net fixed assets	40,000		common stock ($10 par)	40,000
total assets	95,000		Retianed earnings	29,500
			Total liabilties and equity	95,000