1 The 2019 financial statements for Growth Industries are presented below. Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at full capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal,10% of long-term det outstanding at the start of the year. The firm will maintain a dividend payout ratio of 0.60 INCOME STATEMENT, 2019 Sales $290,000 Costs 195,000 EBIT 95,000 Interest expense 19,000 Taxable income 76,000 Taxes (at 218) 15,960 Net income 60,040 Dividends $36.024 Addition to retained earnings $24,016 Assets Current assets Cash Accounts receivable Inventories Total current assets Net plant and equipment BALANCE SHEET, YEAR-END, 2019 Liabilities Current liabilities $ 5,000 Accounts payable 10,000 Total current liabitities 25,000 Long-term debt $ 40,000 Stockholders' equity 230,000 Common stock plus additional paid-in capital Retained earnings $ 270,000 Total liabilities plus stockholders' equity $ 12.000 $ 12,000 190,000 15,000 53,000 $ 270,000 Total assets Required: Construct a spreadsheet model for Growth Industries similar to the one in Spreadsheet 18.1. a. How much external capital will the company require in 2023? b. What will be the company's debt ratio at the end of 2023