Using the following ratio income statement and balance

Question

Question: Using the following ratio, income statement, and balance sheet info below prepare a projected income statement, balance sheet, and statement of cash flows for year 3.                          

Based on initial projections how much long term debt or equity is needed to fund the firms growth at projected increases in sales?

Income statement	year 1	year 2
net sales	6,044	19,889
cost of goods sold	14,048	6204
gross profit	7,893	13685
selling, general and admin expense	803	9221
depreciation and amortization expense	-308	773
interest expense	5,660	292
income before tax	1,691	3399
income tax expense	3,969	1222
net income	3,491	2177
outstanding shares	3,491	3481

 

Balance Sheet	year 1	year 2
cash	1934	1892
receivables	1882	1757
inventories	1055	1066
other current assets	2300	1905
total current assets	7171	6620
property, plants, and equipment	7105	6614
accumulated depreciation	2652	2446
net property, plant, and equipment	4453	4168
other noncurrent assets	10793	10046
total assets	22417	20834
accounts payable and accts liabilities	3679	3905
short term debt	3899	4816
income tax liabilities	851	600
total current liabilities	8429	9321
deferred income taxes	1403	1362
long term debt	1219	835
total noncurrent liabilities	2622	2197
common stock	873	870
capital surplus	3520	3196
retained earnings	20655	18543
treasury stock	13682	13293
shareholder's equity	11366	9316
total liabilities and equity	22417	20834

 

ratios
sales growth	1.02
gross profit margin	69.92
selling, general, and admin expenses	39.28
depreciation/prior year PPE gross	12.14
interest expense/prior year long term debt	5.45
income tax expense/pretax income	29.88
accts receive turnover	10.68
invent turnover	5.73
accts payable turnover	1.64
taxes payable/tax expense	50.33
total assets/stockholders equity	2.06
dividends per share	1.37
capital expenditures/sales	5.91