Stevens Textile Corporation's 2018 financial statements areshown below: Balance Sheet as of December 31, 2018 (Thousands ofDollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0    Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600    Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860    Total assets $29,160    Total liabilities and equity $29,160 Income Statement for January 1 - December 31, 2018(Thousands of Dollars) Sales $36,000 Operating costs 32,440    Earnings before interest and taxes $ 3,560 Interest 460    Pre-tax earnings $ 3,100 Taxes (40%) 1,240 Net income $ 1,860 Dividends (45%) $    837 Addition to retained earnings $ 1,023 Suppose 2019 sales are projected to increase by 10% over 2018sales. Use the forecasted financial statement method to forecast abalance sheet and income statement for December 31, 2019. Theinterest rate on all debt is 7%, and cash earns no interest income.Assume that all additional debt in the form of a line of credit isadded at the end of the year, which means that you should base theforecasted interest expense on the balance of debt at the beginningof the year. Use the forecasted income statement to determine theaddition to retained earnings. Assume that the company wasoperating at full capacity in 2018, that it cannot sell off any ofits fixed assets, and that any required financing will be borrowedas notes payable. Also, assume that assets, spontaneousliabilities, and operating costs are expected to increase by thesame percentage as sales. Determine the additional funds needed. Donot round intermediate calculations. Round your answers to thenearest dollar. Total assets: $    AFN: $    What is the resulting total forecasted amount of the line ofcredit? Do not round intermediate calculations. Round your answerto the nearest dollar. $   In your answers to Parts a and b, you should not have chargedany interest on the additional debt added during 2019 because itwas assumed that the new debt was added at the end of the year. Butnow suppose that the new debt is added throughout the year. Don'tdo any calculations, but how would this change the answers to partsa and b? If debt is added throughout the year rather than only at the end ofthe year, interest expense will be -Select-higherlowerItem 4 thanin the projections of part a. This would cause net income to be-Select-higherlowerItem 5 , the addition to retained earnings to be-Select-higherlowerItem 6 , and the AFN to be-Select-higherlowerItem 7 . Thus, you would have to -Select-addinsubtract fromItem 8 new debt.