TABLE 3.5 Forecasting with a Spreadsheet: Pro Forma Financial Forecast for R&E Supplies, Incorporated, December 31, 2022 ($ thousands) B C D Year 2021 Actual 2022 2023 Net sales $ 20, 613 Growth rate in net sales 25 . 00% Cost of goods soldet sales 86 .0% General, selling, and administrative expenseset sales 12.00% Long-term debt $ 760 $ 660 Current portion long-term debt $ 100 $ 100 Interest rate Tax rate 25 . 00% Dividend/earnings after tax 50. 00% Current assetset sales 29. 00% Net fixed assets $ 280 Current liabilitieset sales 14.50% Owners' equity $ 1, 730 INCOME STATEMENT Equations Forecast Forecast Year 2022 2022 2023 Net sales = B3 + B3 * C4 $ 25, 766 Cost of goods sold = C5 * C19 22, 159 Gross profit C19 - C20 3, 607 General, selling, and administrative expenses C6 * C19 3, 092 Interest expense C9 * (C7 + (8 + C40) 228 Earnings before tax = C21 - C22 - C23 287 Tax C10 * C24 72 Earnings after tax C24 - C25 216 Dividends paid .C11 * C26 108 Additions to retained earnings = C26 - C27 108 BALANCE SHEET Current assets C12 * C19 7, 472 Net fixed assets C13 280 Total assets C31 + C32 7, 752 Current liabilities = C14 * C19 3, 736 Long-term debt = C7 660 Owner's equity B15 + C28 1, 838 Total liabilities and owner's equity = C35 + C36 + C37 6, 234 EXTERNAL FUNDING REQUIRED C33 - C38 $ 1, 518