b$.$ Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Include a reconciliation of the retained earnings account.

c$.$ Analyze these statements, and discuss the resulting external financing required.

a$.$ Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent$-$of$-$sales method.

Complete the pro forma income statement for next year below: $($Round to the nearest dollar.$)$

Pro Forma Income Statement

Provincial Imports, Inc.

for Next Year

$($percent$-$of$-$sales method$)$

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

Provincial Imports, Inc. Income Statement

for the Year Just Ended

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

Provincial Imports, Inc. Balance Sheet

for the Year Just Ended