The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales Costs Other expenses $753,000 588,000 24,000 Earnings before interest and taxes Interest expense $ 141,000 20,000 Taxable income Taxes (25%) $ 121,000 30,250 Net income $ 90,750 $28,133 Dividends Addition to retained earnings 62,617 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,240 Accounts payable $ 55,400 Accounts receivable 44,180 Notes payable 14,600 Inventory 97,960 Total $ 70,000 Total $ 163,380 Long-term debt $ 136,000 Fixed assets Net plant and equipment $429,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 117,500 268,880 Total $386,380 Total assets $592,380 Total liabilities and owners' equity $592,380 In 2019, the firm operated at 80 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round intermediate calculations.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest expense Taxable income Taxes Net income Assets Current assets Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Cash Accounts receivable Inventory Total Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment Total Total assets Total liabilities and owners' equity