Table 3.5 presents a computer spreadsheet for estimating R&E Supplies' external financing required for 2012. The text mentions that, with modifications to the equations for equity and net sales, the forecast can easily be extended through 2013. Write the modified equations for equity and net sales.

TABLE 3.5 Forecasting with a Computer Spreadsheet: Pro Forma Financial Forecast for R&E Supplies, Inc., December 31, 2012 ($ thousands) A B C D 1 2 Year 2011 Actual 2012 2013 3 Net sales $20,613 4 Growth rate in net sales 25.0% 5 Cost of goods sold/net sales 86.0% 6 Gen., sell., and admin. expenses/net sales 12.0% 7 Long-term debt $ 760 $660 8 Current portion long-term debt $ 100 $100 9 Interest rate 10.0% 10 Tax rate 45.0% 11 Dividend/earnings after tax 50.0% 12 Current assets/net sales 29.0% 13 Net fixed assets $280 14 Current liabilities/net sales 14.5% 15 Owners equity $1,730 16 INCOME STATEMENT 17 Equations Forecast Forecast 18 Year 2012 2012 2013 19 Net sales B3+ B3*C4 $25,766 20 Cost of goods sold C5*C19_ 22,159 21 Gross profit C19 - C20 3,607 22 Gen., sell., and admin. exp. C6*C19 3,092 23 Interest expense C9*(C7+C8+C40) 231 24 Earnings before tax C21 - C22 - C23 285 25 Tax C10*C24 128 26 Earnings after tax C24- C25 156 27 Dividends paid C11*C26 78

28 Additions to retained earnings C26- C27 78 29 30 BALANCE SHEET 31 Current assets C12*C19 7,472 32 Net fixed assets C13 280 33 Total assets C31+ C32 7,752 34 35 Current liabilities C14*C19 3,736 36 Long-term debt C7 660 37 Equity B15 + C28 1808 38 Total liabilities and shareholders C35+ C36 + C37 6,204 39 equity 40 EXTERNAL FUNDING REQUIRED C33 - C38 $ 1,548