a$.$ Prepare Pro$-$forma Financial Statement of the Abott Company by using below information. Abott company has the following balance sheet and other data $($data is in Millions$)$:

 

Cash $10 Accounts payable $15 Accounts receivable 25 Notes payable 20 Inventories 40 Accrued wages and taxes 15 Net fixed assets 75 Long-term debt 30 Common equity 70 Total liabilities Total assets $1.50 and equity $150 Sales during the past year were $100, and they are expected to rise by 50% to $150 during next year. Also, during last year fixed assets were being utilized to only 85% of capacity, so Abott could have supported $100 of sales with fixed assets that were only 85% of last year's actual fixed assets. Assume that Abott's profit margin will remain constant at 5% and that the company will continue to pay out 60% of its earings as dividends. What amount of nonspontaneous, additional funds (AFN) will be needed during the next year? Show how will you adjust AFN generated. (09 Marks)