You have been given the attached information on the ABC Company. ABC expects sales to grow by 30 percent in 2013 and operating costs should increase in proportion to sales. Fixed assets were being operated at 85 percent of capacity in 2012, but all other assets were used to full capacity. Underutilized fixed assets cannot be sold. Current assets and spontaneous liabilities should increase in proportion to sales during 2013. The company plans to finance any external funds needed as 40 percent notes payable and 60 percent long-term debt. The interest rate is 10 percent and you can assume that interest expenses will be paid at the beginning of the year. That is, interest expenses for 2013 will be based on the amount of debt at the end of 2012. The dividend payout ratio (50%) will remain constant.

Information on the ABC Company:

Year 2012

Sales $1,000.00

Operating costs 800.00

EBIT $ 200.00

Interest 15.00

EBT $ 185.00

Taxes (40%) 74.00

Net Income $ 111.00

Dividends (50%) 55.50

Add'n to R.E. $ 55.50

December 31, 2012

Current Assets $ 700.00

Net fixed Assets 300.00

Total assets $1,000.00

A/P and Accruals $ 150.00

N/P 100.00

Long term debt 100.00

Common stock 150.00

Retained earnings 500.00

Total Liab & Equity $1,000.00

Calulate the additional funds needed (AFN) using the percentage of sales method and prepare 2013 pro-forma balance sheet (ignore any financing feedback effect).