Task: It contains a balance sheet, income statement and assumptions. You are to use this information to create a proforma balance sheet and incomes statement; and use them to estimate external funds needed.

Sales		5,000,000
Cost of Goods Sold		2,000,000
Gross Profit		3,000,000
Operating Expenses		1,000,000
Depreciation		500,000
EBIT		1,500,000
Interest Expense		100,000
EBT		1,400,000
Taxes		420,000
Net Income		980,000
Dividends		588,000
Additional Retained		392,000
Current Assets
Cash		500,000
Account Receivable		600,000
Inventory		1,000,000
Total		2,100,000
Net Fixed Assets		3,000,000
Total Assets		5,100,000
Current Liabilities
Accounts Payable		250,000
Accruals		350,000
Notes Payable		900,000
Total		1,500,000
Long-term Debt		1,200,000
Total Liabilities		2,700,000
Common Stock		1,700,000
Retained Earnings		700,000
Total Equity		2,400,000
Total Liabilities and Equity		5,100,000
Assumptions:
Sales growth = 20%
COGS as a percentage of sales increases by 200 bps
Operating Expenses as a percentage of sales decreases by 100 bps
Cash, Accountes Receivable, Inventory and net fixed assets remain the same percent of sales
Accounts Payable and Accruals remain the same percent of sales
The tax rate and dividend payout rate do not change
No change in notes payable, long-term debt or common stock
Depreciation increases by 5%