Will this loan be sufficient to cover Mr$.$ Cartwright$$s working capital needs, and continue the growth in the company? To answer this, construct a rough pro$-$forma estimate of the full $2004$ income statement and balance sheet, assuming that the business looks like $2003,$ but with Mr$.$ Cartwright's sales growth targets

Assume Mr$.$ Cartwright's sales targets are correct at $$3\mathrm{.}6$ million

Assume that other operational and balance sheet needs are a constant function of sales

Balance sheet items like receivables around $12\%$ of sales, inventory around $16\%,$ cash around $2\%,$ PPE around $6\%$ of sales

Operational items like cost of goods sold around $72\%$ of sales and Operating Expenses around $25\%$ of sales, etc.

Assume all purchase discounts will be taken for the remaining $3$ quarters of $2004,$ meaning also that payables will shrink to only around $3\%$ of the cost of goods sold and will be replaced by the loan being considered.

Net income will flow into retained earnings, so then the goal is to figure out how large the loan will need to be to make the both sides of the balance sheet equal.