Show changes to the 2012 pro forma balance sheet assuming the company borrows the necessary funds for the capital improvements at an interest rate of 7 percent. Ignore depreciation on the new equipment. Does this cause any significant change in the financials?

EXHIBIT (35.1 Ratios for the Fancyr Foods Industryr Priceearnings ratio times} 16.0 Current ratio {times} 1.8 Quick ratio {times} {1.5 Total debt ratio {'36) 53.0 Total asset turnover ratio ttimes} 'I .5 Return on equity {96} 8.13 Return on sales [353) 2.5 Average collection period 21D {days} EXHIBIT (35.2 Quacker Cracker Balance Sheet for 2012 [$000s) (prepared before anyr nancing decisions have been made) Assets Cash and $15,000 marketable securities Accounts 15,000 receivable Inventory 23,000 Current assets 55,000 Gross fixed assets 52,000 Accum u lated '| 2 .000 depreciation Net fixed assets 40,000 Total assets $95,000 Liabilities and Equity Notes payable Accounts payable Accrued expenses Current liabilities Longterm debt Common stock {$10 parl" Retained earnings Total liabilities and equity * Not publicly waded; 111a last private sale was at $50 a share. 19,500 6,000 25,500 40,000 29,500 $95,000