Dragon Telecommunications Inc. wants to estimate forecasted financial statements for 2012 based on its accounting data in 2011. In 2011 total revenue was $1,550,000; cost of goods sold was $1,250,000; selling and G&A expenses were $110,000; depreciation expense was $15,000; interest expense was $25,000; the average tax rate was 35 percent, and the number of shares outstanding was 80,000. Also, in 2011 Dragon has cash for $20,000; accounts receivable of $120,000; inventory of $220,000; plant & equipment of $1,150,000 with an accumulated depreciation of $250,000. In 2011, accounts payable, notes payable, long-term debt, common stock, additional paid-in-capital, and retained earnings represented 7, ½, 20, 44.5, 12, and 16 percent of total assets respectively. For 2012, Reptile expects a 25% increase in total revenue, while cost of goods sold and selling and G&A expenses are expected to remain in the same proportion of total revenue as in 2011. Also for 2012, total plant and equipment will increase in 12 percent as well as the total annual depreciation expense. Similarly, long-term debt is forecasted to increase by 20 percent as well as the total annual interest expense, but the tax rate and the number of shares outstanding will remain constant. Additionally in 2012, accounts receivable, inventory, accounts payable, and notes payable are expected to increase 15 percent, while common stocks and paid-in-capital will increase by 25 percent. The dividend policy in 2012 will be based on a dividend payout ratio of 50 percent. In other words, 50 percent of forecasted earnings will be paid to shareholders as dividends. Using all these projections, create the forecasted 2012 income statement, balance sheet, and statement of cash flows for Dragon Telecommunications Inc. Each statement should be on a separate worksheet.