2. (5%+5%+5%+5%) If the Hoffman Company anticipates a 12% growth in the upcoming year, what are the required assets, addition to retained earnings, external financing needed, and Debt-Equity Ratio (assumed no debt policy)? Below are the income statement and balance sheet for the Hoffman Company. Consider the company's practice of distributing a consistent fraction of net income as a cash dividend, and the assumption that costs remain a constant percentage of sales. Income Statement Sales Costs Taxable income Taxes (21%) Net income Dividends $500.0 416.5 $83.5 17.5 $66.0 $22 44 Addition to retained earnings Balance Sheet Assets Liabilities and Owners' Equity $ Percentage of Sales $ Percentage of Sales Current assets $200 40% Total debt $250 Net fixed assets 300 60 Owners' equity 250 Total assets $500 100% Total liabilities and owners' equity $500 n/a n/a n/a