Use the information & assumptions below to:

1. Generate a Pro forma Income Statement for next year

2. Generate a Pro forma Balance Sheet for the current year end AND projected next year end

Information & Assumptions for Company XYZ Inc.:

Sales this past year were: $1,000,000. Sales are expected to grow 10% next year. Cost of Goods Sold have historically run at 68% of sales. No change expected. Selling, General & Administrative Expenses have historically run at 12% of sales. No change expected. Depreciation Expense - Fixed assets are depreciated over a ten-year useful life. Interest expense is paid at an average rate of 8% on current long-term interest-bearing debt of $250,000. Last years tax rate was 38%, but under the new tax plan next years tax rate is expected to be 22%. Dividend payout ratio is assumed to stay at 35%. Minimum cash balance is $25,000 (balance unchanged from past fiscal year end) Beginning receivables is $70,000. Beginning inventory is $50,000. Beginning fixed assets stand at $380,000. New fixed assets expected to be acquired total $180,000. Beginning payables is $20,000. Beginning equity is $255,000. Inventory Days has historically run at 44. Receivable Days Outstanding has historically run at 28. Payable Days has historically run at 20