2. 2019 was a very difficult year for Rad Bull due to legal battles and branding issues. Thankfully, it has laid these issues to rest, and in spite of COVID-19 it is projecting a 12% increase in sales for 2020. Rad Bull would like to calculate the amount of external financing needed, if any, to account for its 12% projected increase. Rad Bull 2019 Income Statement Sales $4,350 Costs $3,200 Taxable income $1,150 Taxes (34%) $391 Net Income $759 Rad Bull 2019 Balance Sheet Current assets $3,500 Current liabilities Fixed assets $8,100 Long-term debt $2,200 $3,750 Equity $5,650 Total assets $11,600 Total liabilities & equity|S11,600 a. Use the percentage of sales method and the financial statements above to develop a proforma income statement for Rad Bull for 2020 (include dividends and retained earnings). Assume that costs will increase proportionately to sales. Rad Bull maintains a constant dividend payout ratio of 35% and it has a 34% tax rate. b. Use the financial statements above to develop a proforma balance sheet for Rad Bull for 2020. Assume that all assets and current liabilities will increase proportionately to sales. Long-term debt and equity will not increase as a result of sales. (Hint: remember to account for retained earnings). c. How much external financing, if any, will Rad Bull need to support its 12% growth rate