Victory Co. is expected to see their next year's sales rise up from $200,000 to $240,000. The CFO is using pro forma statements to project the company's funding needs. He has completed pro forma income statement, and predicted that the net income next year will be $35,000 and the increase in retained earnings will be $10,000. The CFO is now working on the pro forma balance sheet. He only has several accounts left without the estimated numbers. You are asked to finish the CFO's pro forma balance sheet by filling out the blanks and find if the business needs additional funding next year. Assume all assets, accounts payable and accruals are changing with the sales level. The company plans to make no change in its common stock. (To earn ANY credit, you MUST SHOW YOUR WORK in each calculation.)

Pro Forma Balance Sheet Worksheet ($) Current year Next year Current year Next year Cash 300,000 360,000 Accounts payable 100,000 Accounts receivable 150,000 180.000 Notes payable 200,000 Inventories G. 50,000 500.000 150.000 450,000 Total CA 60,000 Accruals 600.000 Total CL 600.000 Long-term debt Fixed assets 500.000 400,000 ? Common stock 100,000 ? Retained Earnings 50,000 G. Total assets 1,000,000 1,200,000 Total liabilities ? 1,000,000 and equity Additional Funding Needs based on pro forma statements