URGENT Need help getting started on the Question. If you could help even point me down the right road that would be appreciated.

I am Very lost in this subject.

Most assets can be increased as a percentage of sales. For instance, cash can be increased by any amount. However, fixed assets often must be increased in specific amounts because it is impossible, as a practical matter, to buy part of a new plant or machine. In this case, a company has a staircase or lumpy fixed cost structure. Assume that East Coast Yachts is currently producing at 100 percent of capacity and sales are expected to grow at the rate indicated above. As a result, to expand production, the company must set up an entirely new line at a cost of $78,500,000. Prepare the pro forma income statement and balance sheet. What is the new external financing need with these assumptions? What does this imply about capacity utilization for East Coast Yachts next year? What are your conclusions and recommendations about the feasibility of East Coast's expansion plans?

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