The Budda-Bing Manufacturing CompanyPreparing Pro Forma Financial Statements for 2024Budda-Bing Manufacturing is planning to implement a major plant-modernizationprogram to improve its competitive position. Included will be construction of a state-of-the-art manufacturing facility that will cost $500,000 in 2024 and is expected to lower thecompany’s variable cost per tonne of steel. Tony and Pauli, experienced budget analysts,have been charged with preparing a forecast of the firm’s 2024 financial position assumingconstruction of the proposed new facility. They plan to use the 2023 financial statementspresented above along with the forecasts for other financial accounts provided in thefollowing table.Key Projected Financial Data (2024)The Budda-Bing ManufacturingCompanyData Item ValueSales Increase to $8,000,000Cost of goods sold Remain the same %age of salesSelling Expense Increase by 22%General and administrative expense Increase by 38%Accumulated Amortization Increase to $680,000Interest expense Increase to $100,000Tax rate 40%Dividend payments $50,000Average age of inventory 50 daysAverage collection period 42 daysAverage payment period 27 daysAccruals Increase to $96,000Long-term debt, preferred shares, andcommon shares: Remain the sameCash maintained at $25,000ACC-933 Assignment 1 The Budda-Bing Manufacturing Company Page 6 of 6Required Part B:a.Use the historic and projected financial data provided to prepare a pro formaincome statement and balance sheet for the year ended December 31, 2024.b. Will Budda-Bing Manufacturing Company need to obtain external financing tofund construction of the proposed facility? Explain. Prepare a Statement ofEFR.c. How would you recommend Budda-Bing raise the required Financing? Whatoptions might be available if the company wanted to explore all opportunitiesother than using their line of credit?