You are preparing to discuss borrowing needs with your bank's loan officer who asks you to prepare pro-forma financial statements. Below are the financial statements for the year just ended. Your sales department is projecting a 32% increase in sales. Days sales outstanding are expected to improve to 45 days. With respect to inventory and accounts payable, assume that purchases will be $10,890,000 and cash payments will be $9,801,000. The Company expects to invest $1,670,000 (net of depreciation) to expand its storage capacity and achieve scale savings. Accordingly, gross profit margins are expected to be 25% in the future. Other expenses are expected to remain the same percentage of sales. The retention ratio is 45%. For ease of calculation, assume interest expense remains the same. Prepare pro-forma financial statements and determine the amount of borrowing needs, which will be reflected in long-term debt. (round your answers to the nearest integer, and fill in all amounts including totals

Cash	400,000		Sales	10,000,000
Accounts Receivable	1,400,000		Cost of Sales	8,000,000
Inventory	1,800,000		Gross Profit	2,000,000
Total current Assets	3,600,000		Operating Expense	900,000
Fixed Assets	1,400,000		EBIT	1,100,000
Total Assets	5,000,000		Interest Exp	100,000
			EBT	1,000,000
Accounts Payable	1,200,000		Tax (30%)	300,000
Long-term Debt	1,000,000		Net Income	700,000
Total Debt	2,200,000
Common Stock	1,300,000
Retained earnings	1,500,000
Total Debt and Equity	5,000,000