The Mansfield Corporation had 2015 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows:

......................................Percent

Cash.....................................5%
Accounts receivable...........15
Inventory .............. . ...........20
Net capital assets ........... . 40
Accounts payable..............15
Other payables..................10
Profit margin after taxes....10
The dividend payout rate is 50 percent of earnings, and the balance in retained earnings at the beginning of 2016 was $33 million. Common stock and the company's long-term bonds are constant at $10 million and $5 million, respectively. Payable are currently $7 million.
a. How much additional external capital will be required for next year if sales increase 35 percent? (Assume that the company is already operating at full capacity.)
b. What will happen to external fund requirements if Mansfield Corporation 

1) Reduces the payout ratio,

2) Grows at a slower rate,

3) Suffers a decline in its profit margin? Discuss all three of these separately with an example for each variable.
c. Prepare a pro forma balance sheet for 2016, assuming that any external funds being acquired will be in the form of notes payable. Disregard the information in part bin answering this question (that is, use the original information and part a in constructing your pro forma balance sheet).
d. Calculate debt to total assets, debt to equity, current ratio, return on assets, and return on equity before and after the sales increase.
e. Calculate Mansfield's SGR.