Use the following information for Delta Corporation to answer question 1: (20 marks total)

Year	20X1	20X2
Net sales	$1,500,000	$1,656,598
Cost of goods sold	675,000	745,469
Depreciation	270,000	298,188
Interest paid	43,600	44,000
Cash	127,500	140,811
Accounts receivable	450,000	496,980
Inventory	525,000	579,809
Net fixed assets	1,800,000	1,987,918
Accounts payable	375,000	414,150
Notes payable	45,000	50,000
Long-term debt	500,000	500,000
Common stock	1,000,000	1,000,000
Retained earnings	982,500	1,241,368
Tax rate	35%	35%
Dividend payout	30%	30%

1. Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a constant percentage of sales. Depreciation expense is assumed to be 15% of net fixed assets, while notes payable and long-term debt will remain at the same level as 20X2. The interest rate charged on notes payable and long-term debt is also expected to remain the same. The firm will aim to maintain its dividend payout of 30% for the foreseeable future.

a. Construct the pro-forma Statement of Comprehensive Income and Statement of Financial Position for Delta Corporation for 20X3. Calculate the external financing needed (EFN) for 20X3. Round all your numbers in the pro-forma statements to the nearest dollar. (4 marks)