Forecast the Pro forma Financial Statements for Company C using the % of Sales Method assuming: sales increase by $100,000 in 2017; the company must increase Fixed Assets to $200,000 to support the higher level of production; all new financing will come from additional debt, and the payout ratio, the effective tax rate, and the rate of interest on debt will remain unchanged from 2016. Based on two iterations, what do you forecast for the amount of debt and the D/E-ratio required to support this new growth?

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position