The treasurer of Easyier Ltd has recently developed a computer model to help in the prediction of profits, balance sheets and cash flows. By entering the expected sales figure and the value of various other parameters, the model will print data about profit and produce a balance sheet. Given the following parameters, compose the predicted income statement and the balance sheet produced by the model.

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Expected sales Gross profit as a percentage of sales Expenses as a percentage of sales Tax rate on profits Dividend payout ratio Debt to equity ratio Current assets as a percentage of cost of sales Current ratio Return on equity $80 000 35% 15% 30% 5% 0.8:1 20% 15%