1. Now, assume Top-A1's sales in the subsequent year increase by 15 percent. If all the other relationships remain the same, what will be the pro forma net earnings in two years?

2. Again, assume Top-A1's sales in the subsequent year increase by 15 percent. If all the other relationships remain the same, what will be the pro forma loan requirement in two years?

Total sales of $150,000

Cost of goods sold equal to 76 percent of sales

Total expenses equal to 14 percent of sales

Tax rate of 35 percent

Beginning equity of $50,000

Beginning inventory of $12,000

Age of ending inventory of 60 days

Minimum cash balance of $10,000

Accounts receivable of 30 days

Fixed assets of $60,000

Accounts payable of 35 days