With the following accounts included in Brown Inc.’s financial statements and assumptions, restate the company’s statement of income and statement of financial position. Statement of income: revenue of $3,000,000 will increase by 7%; cost of sales, as a percentage of revenue will decrease from 50% to 45%; distribution costs of $600,000 will increase by 10%, and administrative expenses of $500,000 will be 15% of revenue; the $100,000 of other expenses will increase by 10%; and income tax expense will go from 40% to 42%.

Statement of financial position: non-current assets of $2,000,000 will grow by 10%; inventories currently at 5 times will improve to 5.5 times; both trade receivables at $200,000 and other current assets at $100,000 will grow by 10%; equity remains unchanged at $1,100,000; current liabilities will grow from $500,000 to $600,000 and long-term liabilities is $1,000,000.