Use historical financial statements for the years 1993, 1994, and 1995 to develop pro forma financial statements for the company (both an income statement and a balance sheet). As outlined in the case, your firm projects a 20% increase in sales for 1996 and 1997.

For years ending 12/31	1993	1994	1995
INCOME STATEMENT
Net sales	$16,230	$20,355	$23,505
Cost of sales	9,430	11,898	13,612
Gross profit	6,800	8,457	9,893
Selling, general, and administrative expenses	5,195	6,352	7,471
Depreciation	160	180	213
Net interest expense	119	106	94
Pre-tax income	1,326	1,819	2,115
Income taxes	546	822	925
Net income	$780	$997	$1,190
Dividends	$155	$200	$240
BALANCE SHEET
Assets
Cash	$508	$609	$706
Accounts receivable	2,545	3,095	3,652
Inventories	1,630	1,838	2,190
Total current assets	4,683	5,542	6,548
Gross plant & equipment	3,232	3,795	4,163
Accumulated depreciation	1,335	1,515	1,728
Net plant & equipment	1,897	2,280	2,435
Total assets	$6,580	$7,822	$8,983
LIABILITIES
Current maturities of long-term debt	$125	$125	$125
Accounts payable	1,042	1,325	1,440
Accrued expenses	1,145	1,432	1,653
Total current liabilities	2,312	2,882	3,218
Long-term debt	1,000	875	750
Common stock	1,135	1,135	1,135
Retained earnings	2,133	2,930	3,880
Total shareholders equity	3,268	4,065	5,015
Total liabilities	$6,580	$7,822	$8,983