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develop pro forma income statement and balance sheet for Cumberland Industries for the upcoming year for a 15% increase in sales (assume the firm is...

develop pro forma income statement and balance sheet for Cumberland Industries for the upcoming year for a 15% increase in sales (assume the firm is operating at capacity). Calculate the required assets to generate the sales and the necessary sources of capital (i.e. additional funds needed). Discuss the possible sources for this additional capital including the advantages and disadvantages of each and any other considerations.

Assumptions:
@ capacity
growth rate 15.0% 1.15

Cumberland Industries December 31 Income Statements
(in thousands of dollars)
2009
Sales $750.00
COGS 600.00
EBITDA $150.00
Fixed Op. Costs 55.00
Depreciation 30.00
EBIT $65.00
Interest Expense 20.00
EBT $45.00
Taxes 40% 18.00
Net Income $27.00
Dividends 14.00
Retained Earnings $13.00

Cumberland Industries December 31 Balance Sheets
(in thousands of dollars)
2009
Assets
Cash and cash equivalents $10.20
Accounts Receivable 90.00
Inventories 135.00
Total current assets $235.20
Fixed assets 190.00
Total assets $425.20

Liabilities and equity
Accounts payable $15.00
Accruals 30.00
Notes payable 20.00
Total current liabilities $65.00
Long-term debt 152.20
Total liabilities 217.20
Common stock $65.00
Retained Earnings 143.00
Total common equity $208.00
Total liabilities and equity $425.20

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