1. Morgan Manufacturing has the following abbreviated financial statements for the year ending today. Assets $60,000,000 Operating liabilities $10,000,000 Short-term debt $5,000,000 Long-term debt $15,000,000 Equity $30,000,000 Liabilities + equity $50,000,000 Revenue $50,000,000 Operating expenses -$42,000,000 EBIT $8,000,000 -Interest -$500,000 Revenue $50,000,000 Operating expenses -$42,000,000 EBIT $8,000,000 -Interest -$500,000 -Taxes -$1.575,000 Net income $5,925,000 Suppose that Morgan forecasts a 20% increase in its revenue for the coming year. (a) Suppose that (W) assets. operating liabilities, and short-term debt will change in response to the change in revenue. () the firm intends to have a payout rate of 30%, and (ii) the asset turnover ratio, the profit margin, and the S amount of long-term debt are expected to be constant. What will be the external funds needed based on these assumptions? (Hint: use the equation and do not forecast entire new statements.) Upload Choose a File