Additional Funds Needed Garlington Technologies Inc.'s 2009 financial statements are shown below:

Suppose that in 2010 sales increase by 10% over 2009 sales and that 2010 dividends will increase to $112,000. Construct the pro forma financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2009. Use an interest rate of 13% on the debt balance at the beginning of the year. Assume that the AFN will be in the from of notepayable.

Balance Sheet as of December 31, 2009 Cash 18000 Accounts p.ayable 360,000 156,000 Inventnries 5 696,00 Total current assets1 260000 .440500 Fixed assets Retained eanmines tal asset Tcal ladit itiers and equaity tncome Siatement for December 31, 2009 Sales Opessing cos 3,600,0O 3279 740 120,280 BIT Interes ERT Taxes 140 02,00 120 800 181200 1080