Prepare a pro forma balance sheet GENETICS COMPANY 2017 BALANCE SHEETAssets|LIABILITIESCASH$11,417.00ACCOUNTS PAYABLE$1,298.00ACCOUNTS RECEIVABLE$1,580.00ACCRUED LIABILITIES$3,255.00INVENTORYTOTAL CURRENT ASSETS$1,603.00TOTAL CURRENT LIABILITIES$4,553.00$1,460.00SHAREHOLDER'S EQUITY$10,511.00FIXED ASSETS$464.00TOTAL ASSETS$15,064.00TOTAL LIABILITIES AND EQUITY $15,064.002001 INCOME STATEMENTSALES$11,200.00$1,680.00$9,520.00$16,530.00COST OF GOODS SOLDGROSS PROFITOPERATING EXPENSEOPERATING PROFIT-$7,010.00INTEREST EXPENSE$790.00-$7,800.00PROFIT BEFORE TAXESTAXES$0.00NET PROFIT-$7,800.00A. GENETICS EXPECTS SALES TO DOUBLE IN THE COMING YEARB. COST OF GOODS SOLD AS A PERCENT OF SALES WILL REMAIN CONTANT, WHICH MEANS THAT THE GROSS PROFIT MARGIN WILL ALSO REMAIN CONSTANTC. OPERATING EXPENSES AND INTEREST WILL REMAIN THE SAMED. PROFITS BEFORE TAXES WILL BE TAXED AT 20%E. ALL PROFITS WILL BE REINVESTED IN THE COMPANYQuestions that you need to answerQuestion 1: Prepare a pro forma income statement.Question 2: Prepare a pro forma balance sheet.Question 3: Does this company need external financing?

External financing is borrowing funds from the people to satisfy the routine cash requirements of…

GENETICS COMPANY 2017 BALANCE SHEET Assets LIABILITIES $11,417.00 $1,580.00 CASH ACCOUNTS PAYABLE $1,298.00 ACCOUNTS RECEIVABLE ACCRUED LIABILITIES $3,255.00 INVENTORY $1,603.00 $1,460.00 TOTAL CURRENT LIABILITIES $4,553.00 TOTAL CURRENT ASSETS SHAREHOLDER'S EQUITY $10,511.00 FIXED ASSETS $464.00 TOTAL ASSETS $15,064.00 TOTAL LIABILITIES AND EQUITY $15,064.00 2001 INCOME STATEMENT SALES $11,200.00 $1,680.00 $9,520.00 COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSE $16,530.00 OPERATING PROFIT -$7,010.00 $790.00 -$7,800.00 INTEREST EXPENSE PROFIT BEFORE TAXES TAXES $0.00 NET PROFIT -$7,800.00 A. GENETICS EXPECTS SALES TO DOUBLE IN THE COMING YEAR B. COST OF GOODS SOLD AS A PERCENT OF SALES WILL REMAIN CONTANT, WHICH MEANS THAT THE GROSS PROFIT MARGIN WILL ALSO REMAIN CONSTANT C. OPERATING EXPENSES AND INTEREST WILL REMAIN THE SAME D. PROFITS BEFORE TAXES WILL BE TAXED AT 20% E. ALL PROFITS WILL BE REINVESTED IN THE COMPANY Questions that you need to answer Question 1: Prepare a pro forma income statement. Question 2: Prepare a pro forma balance sheet. Question 3: Does this company need external financing?