Answer:
Global Corporation
Forecasted sales = Current Net Sales x (1 + growth rate)
= $186,200,000 x (1 + 0.09) = $186,200,000 x 1.09 = $202,958,000
Forecasted Net Income = $1,745,438.80 (202,958,000 x 0.86%)
Forecasted Dividend payout = $872,719.40 ($1,745,438.80 x 50%)
Forecasted Retained Earnings = $872,719.40 = $0.87 million
Therefore Forecasted equity = Current Equity + Forecasted Retained Earnings = $22.6 ($21.7 + $0.87)
Explanation:
a) Data and Percentage Calculations:
Income Statement ($million)                           Percentage
Net Sales                                         186.2          100%
Assets Cost Except Depreciation -175.2          94.09%
EBITDA                                              11.0           5.9%
Depreciation and Amortization        -1.1 
EBIT                                                    9.9 
Interest Income (expense)               -7.7 
Pre tax Income                                  2.2
Taxes                                                -0.6
Net Income                                        1.6            0.86%
Dividends paid       50%                  -0.8
Retained Earnings  50%                  0.8
Balance Sheet ($million) 
Cash                                                    22.9 
Accounts Receivable                           18.1 
Inventories                                           15.1 
Total Current Assets                          56.1
Net Property, Plant, and Equipment 113.6
Total Assets                                      169.7
Liabilities and Equity
Accounts Payable                             34.4 
Long term Debt                               113.6 
Total Liabilities                                148.0 
Total Stockholders' Equity               21.7 
Total Liabilities and Equity            169.7
b) The percent of sales method enables the calculation of the relationship between sales and the line figures in the income statement.  Our interest for this question, is the Retained Earnings which we use to calculate the Stockholders' Equity forecasted balance.  The retained earnings percentage to sales = Retained Earnings as given divided by the net sales figure, and then multiplied by 100.
c) To forecast the sales, we use the growth rate of 9%.  This is equal to the current sales x 1.09.  Based on this sales, it becomes possible to forecast the Retained Earnings, having established the percentage of Retained Earnings to Sales, using the percent of sales method.  We apply the established percentage of Retained Earnings to the Sales figure, to get the Retained Earnings for the forecasted period.  This is then added to the Stockholders' Equity to get the forecasted stockholders' equity.