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The balance sheet of the Jackson Company is presented below:

   Jackson Company Balance Sheet
   March 31, 2017
   (Millions of Dollars)
   Current assets    $12    Accounts payable    $6
   Fixed assets    18    Long-term debt    12
   Total    $30    Common equity    12
         Total    $30

For the year ending March 31, 2017, Jackson had sales of $35 million. The common stockholders received all net earnings of the firm in the form of cash dividends, leaving no funds from earnings available to the firm for expansion (assume that depreciation expense is just equal to the cost of replacing worn-out assets).
Construct a pro forma balance sheet for March 31, 2018 for an expected level of sales of $45 million. Assume current assets and accounts payable vary as a percent of sales, and fixed assets remain at the present level. Use notes payable as a source of discretionary financing.

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