The following tables are the income statement and balance sheet for Company X for year 2016.

Income Statement:
	2016
Sales	3,045,600
Costs except Depr.	(1,756,300)
EBITDA	1,289,300
Depreciation	(99,000)
EBIT	1,190,300
Interest Expense (net)	(58,000)
Pretax Income	1,132,300
Income Tax	(396,305)
Net Income	735,995

Balance Sheet
	2016
Assets
Cash and Equivalents	500,000
Accounts Receivable	780,000
Inventories	100,000
Total Current Assets	1,380,000
Property Plant and Equipment	1,700,000
Total Assets	3,080,000
Liabilities and Equity
Accounts Payable	667,000
Debt	200,000
Total Liabilities	867,000
Stockholders' Equity	2,213,000
Total Liabilities and Equity	3,080,000

The executives at Company X believe the sales for the company will grow during 2017 in 8%, compared to 2016. Calculate the pro-forma financial statements for Company X for 2017 using the percent sales method. To do this assume that the percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will stay fixed at the values corresponding for 2016. Assume also that the interest expense and debt will not change in 2017 from its 2016 values, income tax will remain at 35% of the Pretax Income and that in 2017 Company X initially plans to payout 24% of its net income to its shareholders.

a. What is the forecasted value of sales for 2017?

b. What is the forecasted value of net income for 2017?

c.What is the forecasted value of total assets for 2017?

d. What is the forecasted value of total liabilities for 2017?

e. What is the forecasted value of net new financing 2017?

f. What option can the financial manager of Corporation X implement in order to balance total assets and total liabilities and equity for 2017? CHOOSE ONE OPTION ONLY

> Increase the debt by the amount indicated in your calculations of net new financing;

or

> Increase the dividends by the amount indicated in your calculations of net new financing;