The 1992 balance sheet and income statement for the woods company are shown below.

Woods company balance sheet as of December 31,1992(thousand dollars)

Cash 80. Accounts payable 160

Accounts receivables 240. Accruals 40

Inventories 720. Notes payable 252

Total current assets 1040 total current liabilities 452

Fixed assets 3200. Long term debt 1244

Total debt. 1696

Common stock 1605

Retained earnings 939

Total assets 4240 Total liabilities and equity 4240

Woods company income statement for December 31,1992(thousands of dollars)

Sales. 8000

Operating costs 7450

Ebit 550

Interest 150

Ebt 400

Taxes(40%) 160

Net income 240

Per share data

Common stock price 16.96

Earnings per share(EPS). 1.60

Dividends per share(DPS) 1.04

Question A)

The firm operated at full capacity in 1992.it expects sales to increase by 20% during 1993 and expects 1993 dividends per share to increase to 1.10.use the projected balance sheet method to determine how much outside financing is required,developing the firms pro forma balance sheet and income statement, and use AFN as the balancing item

Question B)

If the firm must maintain a current ratio of 2.3 and a debt ratio of 40%.how much financing after the first pass, will be obtained using notes payable, long term debt and common stock?

Question C)

Make the second pass financial statements incorporating finance feedbacks, using the ratios in part b. Assume that the interest rate on debt averages 10 percent