The most recent statement of financial position and statement of comprehensive income of Hardware Inc. are shown here:

Generate the pro forma statements for the next year based on the assumption that the growth rate is 15%. Calculate the external financing needed. Assume the plan is to keep the retention rate constant, and the A/P, the fixed assets, and the current assets grow at the same rate as the Sales growth rate, which is 15%.

Statement of Financial Position Recent Recent ASSETS LIABILITIES & OWNERS' EQUITY Current Assets Current Liabilities ca $1.500 A/P $2.000 Ace Recev 2.500 Notes/Pay 3.000 Inventory 2.000 Total 5.000 Total 6.000 CT Debt 2.000 Feed Assets Owners' Equity Net PPLE 8.000 Com Shares 2.900 Total Assets 14.000 RE 4.100 Total 7.000 TotalLGOE 14.000 Statement of Comp. Income Sales 7.000 Costs 3,000 EBT 4.000 Taxes (40%) 1.600 Net Income 2.400 Dividends 900 Add. To RE 1500