The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $390,000 per year for the next 4 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 20% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $94 and variable costs at 70% of revenue. The companys policy is to pay out one-half of net income as dividends and to maintain a book debt ratio of 20% of total capital.

INCOME STATEMENT, 2019 (Figures in $ thousands)
Revenue				$	2,400
Fixed costs					94
Variable costs (70% of revenue)					1,680
Depreciation					312
Interest (6% of beginning-of-year debt)					18
Taxable income					296
Taxes (at 35%)					104
Net income				$	192
Dividends	$	96
Addition to retained earnings	$	96

BALANCE SHEET, YEAR-END (Figures in $ thousands)
	2019
Assets
Net working capital	$	40
Fixed assets		1,560
Total assets	$	1,600
Liabilities and shareholders equity
Debt	$	300
Equity		1,300
Total liabilities and shareholders equity	$	1,600

Required:

a1. Produce an income statement for 2020. Assume that net working capital will equal 50% of fixed assets.

a2. Produce a balance sheet for 2020. Assume that net working capital will equal 50% of fixed assets.

b. Now assume that the balancing item is debt and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2020.

c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2022?

Reg A1 Reg A2 Reg B Reqc Produce an income statement for 2020. Assume that net working capital will equal 50% of fixed assets. (In positive values. Enter your answers in thousands.) 94 Pro-Forma Income Statement 2020 Revenue Fixed costs Variable costs Depreciation Interest Taxable income Taxes Net income Dividends Retained earnings 312 18 Reg A1 Req A2 Reg B ReqC Produce an balance sheet for 2020. Assume that net working capi thousands.) Balance Sheet Year-End 2020 Assets Net working capital Fixed assets Total assets Liabilities & Shareholders' Equity Debt Equity Total liabilities & shareholders' equity Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Reqc What is the projected debt ratio for 2022? (Round your answer to 3 decimal places.) Debt ratio