Universal Products Company
Financial Statements, 2021 and Pro Forma 2022 ($ thousands)
INCOME STATEMENT
	Actual	Forecast
	2021	2022
Sales	$5,700	$6,100
Cost of goods sold	3,800	4,600
Operating expense	600	600
Depreciation expense	250	260
Interest expense	90	80
Earnings before tax	960	560
Tax	336	196
Net Income	624	364

Universal Products Company
Financial Statements, 2021 and Pro Forma 2022 ($ thousands)
BALANCE SHEET
	Actual	Forecast
	2021	2022
Current assets	$3,200	$3,450
Net xed assets	2,000
Total assets	$5,200
Current liabilities	$1,090	$1,210
Long-term debt	600	500
Owners equity	3,510
Total liabilities & equity	$5,200

1. Assume that Universal plans to purchase $600,000 in xed assets during 2022 and to dispose of no xed assets during 2022. What would be its forecast for net xed assets in 2022?

2. Assume that Universal plans to have a dividend payout ratio of 50 percent in 2022 and will neither sell nor repurchase equity during 2022. What would be its forecast for owners equity in 2022?

3. Given the assumptions in questions (a) and (b), what is Universals projected external funding required for 2022?