The financial statements of Prince Albert Gold Fields Limited are as follows: Prince Albert Gold Fields Limited Income Statement for the year ended December 31, 2010 (in $ thousands) Sales Less: Cost of goods sold Gross profit Less: Selling expenses Distribution expenses Other expenses Earnings before taxes Less: Income tax expense (20%) Net income Opening retained earnings, January 1 Add: Net income Less: Dividends paid Closing retained earnings. December 31 Current assets Cash Accounts receivable Inventory Total current assets Prince Albert Gold Fields Limited Statement of Retained Earnings for the year ended December 31, 2010 (in $ thousands) Property, plant, and equipment, net Total assets Current liabilities Accounts payable Income taxes payable Total current liabilities 140 20 (5) 155 Prince Albert Gold Fields Limited Balance Sheet as at December 31, 2010 (in $ thousands) 100 300 400 290 30 10 5 800 250 1,050 295 250 180 70 45 25 1 Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 600 155 755 1,050 The following information applies to 2011: 1. Sales are expected to increase by 15%. 2. Distribution and other expenses are expected to rise by 5%. 3. The corporate income tax rate will be 30% next year, with the full amount due by March 31. 4. Prince Albert will raise the dividend payout ratio to 30% next year. 5. For all other accounts, use the percent-of-sales method. 6. Any financing gap will be filled by long-term debt. Required: Prepare pro forma financial statements to two decimal places for the year ended December 31, 2011.