Question: The current income statement and balance sheet for Antigua Ltd. are given as follows:

Prepare pro Jonna income statements and balance sheets for the next 3 years, given the following predictions: Inflation is expected to increase dollar sales by 8 percent annually, while real sales growth will contribute 2 percent annually. Cost of goods sold, accounts receivable, inventories, and accounts payable are all expected to remain at a constant percentage of sales over the next 3 years. Selling and administrative expenses will grow at a rate that equals half the percentage increase in sales, plus an expected fixed increase of $30,000 per year. Cash, investments, and preferred-share accounts are expected to remain at current levels. $ 1 00,000 of I O-percent long-term debt will be issued in year 2, and the number of common shares outstanding will remain unchanged. Other assets will decrease $200,000 in year 1. Plant and equipment purchases will be $200,000 m year 1, $ 1 00,000 in year 2, and $300,000 in year 3. $40,000 in dividends are to be distributed each year. Assets are depreciated at the current average rate over the next 3 years. Any excess funds are used first to reduce other liabilities, then notes payable. If any funds are left after these two liability accounts are reduced to zero, such surplus funds will be invested in additional marketable securities. Otherwise, no additions to the marketable securities account are contemplated.