Please create a Proforma Income statement with the following assumptions S&S Air is planning for a sales growth rate of 12 percent next year. Assuming that cash, accounts receivable, inventory, Net plant and equipment, and accounts payable will grow at 12% as well, and notes payable, long-term debt, and common stock remain the same as 2019

CASE STUDY 3 Planning for Growth at S&S Air After Chris completed the ratio analysis for S&S Air, Mark and Todd approached him about planning for next year's sales. The company had historically used little planning for investment needs. As a result, the company experienced some challenging times because of cash flow problems. The lack of planning resulted in missed sales, as well as periods when Mark and Todd were unable to draw salaries. To this end, they would like Chris to prepare a financial plan for the next year so the company can begin to address any outside investment requirements. The income statement and balance sheet are shown here: S&S AIR, INC. 2019 Income Statement Sales $40,259,230 Cost of goods sold 29,336,446 Other expenses 5,105,100 Depreciation 1,804,220 EBIT Interest $ 4,013,464 630,520 $ 3,382,944 Taxable income Taxes (40%) 1,353,178 Net income $ 2,029,766 S&S AIR, INC. 2019 Balance Sheet Liabilities and Equity Dividends Add to retained earnings Assets Current assets Cash Accounts receivable Inventory Total current assets Fixed assets Net plant and equipment Total assets $ 610,000 1,419,766 $ 456,435 Current liabilities Accounts payable Total current liabilities 733,125 Notes payable 1,073,180 2,262,740 Long-term debt Shareholder equity $17,723,430 Common stock Retained earnings Total equity $19,986,170 Total liabilities and equity $ 929,005 2,121,350 $ 3,050,355 $ 5,500,000 $ 400,000 11,035,815 $11,435,815 $19,986,170 CASE STUDY 3 Planning for Growth at S&S Air After Chris completed the ratio analysis for S&S Air, Mark and Todd approached him about planning for next year's sales. The company had historically used little planning for investment needs. As a result, the company experienced some challenging times because of cash flow problems. The lack of planning resulted in missed sales, as well as periods when Mark and Todd were unable to draw salaries. To this end, they would like Chris to prepare a financial plan for the next year so the company can begin to address any outside investment requirements. The income statement and balance sheet are shown here: S&S AIR, INC. 2019 Income Statement Sales $40,259,230 Cost of goods sold 29,336,446 Other expenses 5,105,100 Depreciation 1,804,220 EBIT Interest $ 4,013,464 630,520 $ 3,382,944 Taxable income Taxes (40%) 1,353,178 Net income $ 2,029,766 S&S AIR, INC. 2019 Balance Sheet Liabilities and Equity Dividends Add to retained earnings Assets Current assets Cash Accounts receivable Inventory Total current assets Fixed assets Net plant and equipment Total assets $ 610,000 1,419,766 $ 456,435 Current liabilities Accounts payable Total current liabilities 733,125 Notes payable 1,073,180 2,262,740 Long-term debt Shareholder equity $17,723,430 Common stock Retained earnings Total equity $19,986,170 Total liabilities and equity $ 929,005 2,121,350 $ 3,050,355 $ 5,500,000 $ 400,000 11,035,815 $11,435,815 $19,986,170