13. External Funds Needed The Optical Scam Company has forecast a sales growth rate of 15 percent for next year. The current financial statements are shown here: Sales Costs Taxable income Taxes Net income Income Statement $24,046,000 21,395,000 $ 2,651,000 662,750 $ 1,988,250 Dividends Addition to retained earnings $ 397,600 1,590,650 Balance Sheet Assets Liabilities and Owners' Equity Current assets $ 7,245,000 Accounts payable Long-term debt $ 5,200,000 $ 5,900,000 Fixed assets 19,380,000 Common stock $ 3,100,000 Accumulated retained earnings 12,425,000 Total assets $26,625,000 Total equity Total liabilities and equity $ 15,525,000 $26,625,000 a. Using the equation from the chapter, calculate the external funds needed for next year. b. Construct the firm's pro forma balance sheet for next year and confirm the external funds needed that you calculated in part (a). c. Calculate the sustainable growth rate for the company. d. Can the company eliminate the need for external funds by changing its dividend policy? What other options are available to the company to meet its growth objectives?