The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it n plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 4 years, an forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 20% of net fixed assets at the begin the year. Fixed costs are expected to remain at $86 and variable costs at 70% of revenue. The company's policy is to pay out on of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019 (Figures in $ thousands) Revenue Fixed costs Variable costs (70% of revenue) Depreciation Interest (6% of beginning-of-year debt) Taxable income Taxes (at 35%) Net income Dividends Addition to retained earnings $ 1,800 86 1,260 160 18 276 97 $ 179 $ 90 $ 89 BALANCE SHEET, YEAR-END (Figures in $ thousands) 2019 $ 400 800 $ 1,200 Assets Net working capital Fixed assets Total assets Liabilities and shareholders' equity Debt Equity Total liabilities and shareholders' equity $ 300 900 $ 1,200 Required: a 1. 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 2020. c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2020? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 ReqB Reg C Produce an income statement for 2020. Assume that net working capital will equal 50% of fixed assets. (Input all amounts as positive values. Enter your answers in thousands.) Pro-Forma Income Statement 2020 The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it n plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 4 years, an forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 20% of net fixed assets at the begin the year. Fixed costs are expected to remain at $86 and variable costs at 70% of revenue. The company's policy is to pay out on of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019 (Figures in $ thousands) Revenue Fixed costs Variable costs (70% of revenue) Depreciation Interest (6% of beginning-of-year debt) Taxable income Taxes (at 35%) Net income Dividends Addition to retained earnings $ 1,800 86 1,260 160 18 276 97 $ 179 $ 90 $ 89 BALANCE SHEET, YEAR-END (Figures in $ thousands) 2019 $ 400 800 $ 1,200 Assets Net working capital Fixed assets Total assets Liabilities and shareholders' equity Debt Equity Total liabilities and shareholders' equity $ 300 900 $ 1,200 Required: a 1. 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 2020. c. Assume that the balancing item is debt and that no equity is to be issued, what is the projected debt ratio for 2020? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 ReqB Reg C Produce an income statement for 2020. Assume that net working capital will equal 50% of fixed assets. (Input all amounts as positive values. Enter your answers in thousands.) Pro-Forma Income Statement 2020