Grape Corporation has placed a term loan request with its lender and submitted the following balance sheet entries for the year just concluded and the pro forma balance sheet expected by the end of the current year. Construct a pro forma Statement of Cash Flows for the current year using the consecutive balance sheets and some additional needed information. The forecast net income for the current year is $210 million with $50 million being paid out in dividends. The depreciation expense for the year will be $100 million and planned expansions will require the acquisition of $300 million in fixed assets at the end of the current year. As you examine the pro forma Statement of Cash Flows, do you detect any changes that might be of concern either to the lenders credit analyst, loan officer, or both?

Grape Corporation (all amounts in millions of dollars
	Assets at the End of the Most Recent Year	Assets Projected for the End of the Current Year		Liabilities and Equity at the End of the Most Recent Year	Liabilities and Equity Projected for the End of the Current Year
Cash	$ 532	$ 600	Accounts payable	$ 970	$1,069
Accounts receivable	1,018	1,210	Notes payable	2,733	2,930
Inventories	894	973	Taxes payable	327	216
Net fixed assets	2,740	2,940	Long-term debt obligations	872	1,072
Other assets	66	87	Common stock	85	85
			Undivided profits	263	473
Total assets	$5,250	$5,810	Total liabilities and equity capital	$5,250	$5,810