Universal Products Co. has almost finished its pro forma financial statements for 2022, as shown next.

a. Assume that Universal plans to purchase $500,000 in fixed assets during 2022 and to dispose of no fixed assets during 2022. What would be its forecast for net fixed assets in 2022?

b. Assume that Universal plans to have a dividend payout ratio of 50 percent in 2022 and will neither sell nor repurchase equity during 2022. What would be its forecast for owners’ equity in 2022?

c. Given the assumptions in questions (a) and (b), what is Universal’s projected external funding required for 2022?

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Universal Products Co. Financial Statements, 2021 and Pro Forma 2022 ($ thousands) BALANCE SHEET Actual INCOME STATEMENT Actual Forecast 2021 2022 $5,000 $5,500 4,000 4,400 550 260 50 240 84 $156 Sales Cost of goods sold Operating expense Depreciation expense Interest expense Earnings before tax Tax Net income 500 250 50 200 70 $130 Current assets Net fixed assets Total assets Current liabilities Long-term debt Owners' equity Total liabilities & equity 2021 $2,500 2,000 $4,500 $1,050 500 2,950 $4,500 Forecast 2022 $2,750 $1,155 500