Problem 4-2 Pro Forma Statements and EFN [LO1, 2]

Consider the following simplified financial statements for the Wesney Corporation (assuming no income taxes):

Income Statement		Balance Sheet
Sales	$ 30,100	Assets	$ 21,050	Debt	$ 6,550
Costs	24,380			Equity	14,500
Net income	$ 5,720	Total	$ 21,050	Total	$ 21,050

The company has predicted a sales increase of 14 percent. Assume the company 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. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

What is the external financing needed? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)