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 $756,000 Costs 591,000 Other expenses 27,000 Earnings before interest and taxes Interest expense $ 138,000 23.000 Taxable income Taxes (239) $ 115,000 26,450 Net Income $ 88,550 $26.565 Dividends Addition to retained earnings 61.985 SCOTT INN Balance Sheet as of December 31, 2019 Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 21,540 Accounts payable $ 55,700 Accounts receivable 44,480 Notes payable 14,900 Inventory 100,960 Total $ 70,600 Total $ 166,980 Long-term debt $ 139,000 Fixed assets Net plant and equipment $ 432,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 119,000 270,380 Total $389.380 Total assets $598.980 Total liabilities and owners! equity $598,980 In 2019. the firm operated at 75 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.) In 2019, the firm operated at 75 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 Cash Accounts receivable Inventory Total Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity Fixed assets Net plant and equipment Total assets