What has been the companys financial strategy? Why does Mr. Butler have to borrow so much money to support this seemingly profitable business? Has he been managing his companys cash flow wisely? 3. Do you agree with Mr. Butlers estimate that he will need up to $465,000 in 2011. How much will he need to borrow to finance his expected expansion in sales in 2011 (assume sales volume hits $3.6 million)? To answer these questions, construct pro forma income statements and balance sheets for 2011 and make the following assumptions: Mr. Butler reduces the payables period to 10 days Discounts are recorded as a separate line item on income statements The tax rate is a flat 34% Interest expense in 2011 is based on bank debt of $465,000 Bank debt is also used to repay any trade notes payable 4. How much will Mr. Butler need over the next few years if sales grow at 25% per year?