Taylor Technologies is a small manufacturer of ultrasound equipment. The Year 1 financialstatements for the firm are shown below:

Balance Sheet as of December 31, Year 1 (thousands of dollars)

Cash $90,000

Receivables $180,000

Inventories $360,000

Total current assets $630,000

Net fixed assets $720,000

Total assets $1,350,000

Accounts payable $180,000

Notes payable $78,000

Accruals $90,000

Total current liabilities $348,000

Common stock $900,000

Retained earnings $102,000

Total liabil & equity $1,350,000

Income Statement for Year 1 (thousands of dollars)

Sales $1,800,000

Operating costs $1,639,860

Earnings before interest and taxes $160,140

Interest $10,140

Earnings before taxes $150,000

Taxes (40%) $60,000

Net income $90,000

Dividends (60%) $54,000

Addition to retained earnings $36,000

Suppose that in Year 2, sales increase by 10 percent over Year 1 sales. Construct the pro forma financial statements using the constant growth method. Assume the firm operated at full capacity in Year 1. I need the external funding requirement.