Question: Use the financial information for Starlight from Problem 16.1. Assume now that equity accounts do not vary directly with sales but change when retained earning

Use the financial information for Starlight from Problem 16.1. Assume now that equity accounts do not vary directly with sales but change when retained earning change or new equity is issued. The company pays 45 percent of its income as dividends every year. In addition, the company plans to expand production capacity by building a new facility that will cost $225,000. The firm has no plans to issue new equity this year. Any funds that need to be raised will be in the form of long-term debt. Prepare a pro forma using this information?

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