​A Firm with Sales of $5,000 Has the Following Balance $\text { Assets, Liabilities and Equity as of } \mathrm{XX} / \mathrm{XX} / \mathrm{XX}$

​A firm with sales of $5,000 has the following balance sheet:
​ $\text { Assets, Liabilities and Equity as of } \mathrm{XX} / \mathrm{XX} / \mathrm{XX}$
$\begin{array}{lclc}\text { Assets }&&\text { Liabilities and Equity }\\\hline\text { Accounts receivable } & \$ 1,300 & \text { Accounts payable } & \$ 1,200 \\\text { Inventory } & 1,600 & \text { Long-term debt } & 2,500 \\\text { Plant } & 1,700 & \text { Equity } & 900 \\& \$ 4.600 & & \$ 4,600\end{array}$
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The firm earns 5 percent on sales and expects sales to rise to $5,500. The increase may require additional financing. Regression analysis is used to estimate accounts receivable, inventory, and trade accounts (payables). These estimated equations are accounts receivable $= \$ 300 + 0.2$ Sales
inventory $= \$ 400 + 0.3$ Sales
accounts payable $= \$ 200 + 0.3$ Sales ​
Management expects to distribute 20% of earnings.
a. Determine the new balance sheet entries for sales of $5,500.
b. the firm need external financing to achieve sales of $5,500?
c. Construct the pro forma balance sheet for sales of $5,500. Any new financing should be obtained by issuing new long‑term debt. Any excess funds should be held in cash.