2016 and 2017 Balance Sheet Assets Current Assets 2016 2017 Total Current Assets ,500 S5.700 Liabilities and Own. Eq. 2016 2017 Total Current Liabilities $2.780 $2.870 6.200 6455 Current Liabilities Fixed Assets Long Term Debt Net Plant and Equipment 8.750 9425 Owners' Equity 870 875 Retained Earnings 4400 4.925 5.270 5.800 Common Stock Total Equity Total Assets 14250 15.125 Total Liabilities &Equity14250 01 Sales Cost of Goods Sold Taxable Income Taxes Net Income $9,850 7.350 2,500 875 1.625 Dividends Retained Eamings 900 725 1) Using the above referenced financial statements for Banely, Inc., you are given a report indicating that a 10% growth rate in sales is projected for 2018. Barely is operating at full capacity and the cost of goods sold is projected to increase proportionally with sales. The dividend payout ratio will remain constant. A) Prepare a pro forma income statement for 2018 (15 points). B) Prepare a pro forma balance sheet for 2018. Indicate which, if any, of the liability and equity accounts cannot be projected by labeling the projection as N/A. Explain your assumptions and results for your balance sheet projections (20 points). C) What is Banely's EFN and does this mean that the company is projected to be running at a surplus or a deficit in 2018 (5 points)