Use the information provided below to complete the tables as shown. Assume sales will increase by 30% in 2013.

Income Statement

Vector Manufacturing Income Statement
	2012 Actual	2013 Pro Forma
Sales revenue	$125,000
Less: Cost of goods sold
Fixed cost	$50,000
Variable cost (40% of sales)	$50,000
Gross Profit	$25,000
Less: Operating expenses
Fixed expense	$5,000
Variable expense (5% of sales)	$6,250
Operating profits	$13,750
Less: Interest expense (all fixed)	$1,000
Net profits before taxes	$12,750
Less: Taxes (15% of net profit before taxes)	$1,913
Net profits after taxes	$10,838

Balance Sheet

Use the following information and the table below to complete the 2013 balance sheet.

1. Minimum cash balance of $5,000 is required.
2. Marketable securities will remain unchanged.
3. Accounts receivable on average represent 45 days of sales (about 1/8 of year or 12.5%).
4. Ending inventory will remain unchanged.
5. A new machine costing $20,000 will be purchased, and total depreciation for the year is $5,000.
6. Purchases will represent 30% of annual sales. It will take 75 days to pay the accounts payable, so accounts payable should equal 75 days/365 days or 20.5% of the firms purchases.
7. Taxes payable will equal 25% of the firms tax liability as shown on the income statement (see taxes on income statement).
8. Notes payable will be used for additional financing needs (plug).
9. No change in other current liabilities is expected.
10. No changes to long-term debt or common stock are expected.
11. Retained earnings will equal the beginning balance from 2012 plus the 2013 profit (see pro forma income statement). A $5,000 dividend payment will be made in 2013.

Vector Manufacturing Balance Sheet
	12/31/12	12/31/13
Assets
Cash	$5,000
Marketable securities	$4,000
Accounts receivable	$12,000
Inventories	$15,000
Total current assets	$36,000
Net fixed assets	$50,000
Total assets	$86,000
Liabilities and Stockholders' Equity
Accounts payable	$6,000
Taxes payable	$500
Notes payable	$6,500
Other current liabilities	$3,000
Total current liabilities	$16,000
Long-term debt	$15,000
Total liabilities	$31,000
Common stock	$35,000
Retained earnings	$20,000
Total liabilities and stockholders' equity	$86,000