financial data, prepare the pro forma balance sheet in order to answer the following multiple choice questions.

$($a$)$ The firm estimates sales of $$1,000,000.$

$($b$)$ The firm maintains a cash balance of $$25,000.$

$($c$)$ Accounts receivable represents $15$ percent of sales.

$($d$)$ Inventory represents $35$ percent of sales.

$($e$)$ A new piece of mining equipment costing $$150,000$ will be purchased in $2019.$

Total depreciation for $2019$ will be $$75,000.$

$($f$)$ Accounts payable represents $10$ percent of sales.

$($g$)$ There will be no change in notes payable, accruals, and common stock.

$($h$)$ The firm plans to retire a long term note of $$100,000.$

$($i$)$ Dividends of $$45,000$ will be paid in $2019.$

$($j$)$ The firm predicts a $4$ percent net profit margin.

Table $4\mathrm{.}5$

Balance Sheet

General Talc Mines

December $31,2018$

General Talc Mines may prepare to $.($See Table $4\mathrm{.}5)$

A$.)$ repurchase common stock equal to the external funds requirement

B$.)$ cancel the retirement of the long term note to cover the needed financing

C$.)$ eliminate the dividend to cover the needed financing

D$.)$ arrange for a loan equal to the external funds requirement