Chapter 4 Homework instructions I help Question 2 (of 16) Save & Exit Submit 1. 2. value: 7.69 points Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes): Income Statement Sales $ 46,100 Costs 39,630 Assets Balance Sheet $24,300 Debt Equity $24,300 Total $ 6,300 18,000 $24.300 Net income $ 6,470 Total The company has predicted a sales increase of 10 percent. Assume Fire pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Round your answers to the nearest whole dollar amount.) Pro forma income statement Sales 5 5 0710 Costs 43593 Assets $ Pro forma balance sheet 26730 Debt Equity $ 6300 Net income $ 7117 Total $ 26730 Total $ 26730 Determine the external financing needed. (Negative amount should be indicated by a minus sign.) External financing needed $ References eBook & Resources Worksheet Learning Objective: 04-01 How to apply the percentage of sales method