For this exercise, use the preceding data for Schwartz Company. Now assume that Schwartz pays common shareholders a dividend of $25 in Year +1. Also assume that Schwartz uses long-term debt as a flexible financial account, increasing borrowing when it needs capital and paying down debt when it generates excess capital. For simplicity, assume that Schwartz pays 10.0 percent interest expense on the ending balance in long-term debt for the year and that interest expense is tax deductible at Schwartz’s average tax rate of 20.0 percent. Present the projected income statement and balance sheet for Year +1.