Q$4.$ You have been given the attached information on the ABC Company. ABC expects sales to grow by

$30$ percent in $2013$ and operating costs should increase in proportion to sales. Fixed assets were being

operated at $85$ percent of capacity in $2012,$ but all other assets were used to full capacity. Underutilized

fixed assets cannot be sold. Current assets and spontaneous liabilities should increase in proportion to

sales during $2013.$ The company plans to finance any external funds needed as $40$ percent notes payable

and $60$ percent long$-$term debt. The interest rate is $10$ percent and you can assume that interest

expenses will be paid at the beginning of the year. That is$,$ interest expenses for $2013$ will be based on

the amount of debt at the end of $2012.$ The dividend payout ratio $(50\%)$ will remain constant.

Information on the ABC Company:

Year $2012$

December $31,2012$

Calulate the additional funds needed $($AFN$)$ using the percentage of sales method and prepare $2013$

pro$-$forma balance sheet $($ignore any financing feedback effect$).$