Suppose you need to replace a long-term loan with existing borrowing totaling $785 thousand at year-end 2017. The new loan would be in the amount of $840 thousand and would be issued at the beginning of 2018. At that time, the existing notes payable and long-term debt would be repaid. The new loan would be repaid in 4 equal installments, with the first payment to be made at the end of 2018. The interest rate on all existing and new debt is 10% and interest expense is calculated on the previous year’s ending balance.

Using the table below, complete pro forma income statement and balance sheet for ATS company.

	2018	2019	2020	2021
Sales growth (%)	15	15	10	10
Gross margin (%)	25	25	27	27
Increase in SG&A (%)	10	10	8	8
Depreciation (% of sales)	1.5	1.5	1.25	1.25
Cap. Exp. ($000s)	90	100	135	145
Inventory Turns	7.0	7.5	7.8	8.0
DSO	70	70	68	68
DPO	22	22	24	24
Accruals (% of sales)	4	4	4	4
Cash (% of sales)	2	2	2	2
Dividend payout ratio (%)	20	20	20	2