Table 4.5A financial manager at General Talc Mines has gathered the financial data essential to prepare a pro forma balance sheet for cash and profit planning purposes for the coming year ended December31, 2015. Using the percentminusofminussales method and the following financialdata, prepare the pro forma balance sheet in order to answer the following multiple choice questions.(a) The firm estimates sales of$1,000,000.(b) The firm maintains a cash balance of$25,000.(c) Accounts receivable represents 15 percent of sales.(d) Inventory represents 35 percent of sales.(e) A new piece of mining equipment costing$150,000 will be purchased in 2010. Total depreciation for 2010 will be$75,000.(f) Accounts payable represents 10 percent of sales.(g) There will be no change in notespayable, accruals, and common stock.(h) The firm plans to retire a long term note of$100,000.(i) Dividends of$45,000 will be paid in 2015.(j) The firm predicts a 4 percent net profit margin.Balance SheetGeneral Talc MinesDecember31, 2014

Assets	Liabilities and stockholders'
Cash. . . . . . . . . . . . . . . . . . .	25,000	Equity accounts payable. . . . . . . . . . . . . .	80,000
Accounts receivable. . . . . . . .	120,000	Notes payable. . . . . . . . . . . . . . . . . . . . . .	350,000
Inventories. . . . . . . . . . . . . . .	300,000	Accruals. . . . . . . . . . . . . . . . . . . . . . . . . .	50,000
Total current assets. . . . . . . . .	445,000	Total current liabilities. . . . . . . . . . . . . . . .	480,000
Net fixed assets. . . . . . . . . . .	500,000	Long-term debts. . . . . . . . . . . . . . . . . . . .	150,000
Total liabilities. . . . . . . . . . . . . . . . . . . . . .	630,000
Stockholders' equity
		Common stock. . . . . . . . . . . . . . . . . . . . .	180,000
Retained earnings. . . . . . . . . . . . . . . . . . .	135,000
Total Stockholders' equity. . . . . . . . . . . . .	315,000
Total assets. . . . . . . . . . . . . .	$945,000	Total liabilities and stockholders' equity. . . .	$945,000

The pro forma accumulated retained earnings amount is________. (See Table4.5)

A.

$90,000

B.

$175,000Your answer is not correct.

C.

$130,000This is the correct answer.

D.

Please give a step by step of this solution. $130,000 correct answer