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Accounting

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[The following information applies to the questions displayed below.]
Selected assumptions for 2022
Sales growth rate 9%
Cost of goods sold/Sales 62%
Dividends/Net income 40%
Income Statement Balance Sheet
Actual Forecast Actual Forecast
2021202220212022
Sales $ 1,000 Cash $ 100
Cost of goods sold 600 Accounts receivable 200
Operating expense 200 Inventory 500
Depreciation expense 100 Total Current Assets 800
EBIT 100 Net PP&E 1,000
Interest expense 35 Total Assets 1,800
Pre-tax income 65
Tax 26 Accounts payable 300
Net Income $ 39 Bank loan 100
Total Current Liabilities 400
Long-Term Debt 400
Shareholders' Equity 1,000
Total Liabilities & Equity $ 1,800
Please refer to the spreadsheet above. Selected assumptions are given for preparing pro forma financial statements for 2022. Assume that no new equity will be issued and that no equity will be repurchased in 2022. When the pro formas are completed, which of the following formulas would correctly give the forecast for shareholders equity in cell G19?
Multiple Choice
= F19* B2
= F19*(1+ B2)
= F19+(1 B4)* C16
= F19+ B4* C16
None of the options are correct.

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