(5-8) PRO FORMA STATEMENTS AND RATIOS Cavuto Limited makes bulk purchases of men's and women's shoes, stocks them in conveniently located warehouses, and ships them to its chain of retail stores. Cavuto's balance sheet as at December 31, 2021, is shown here (millions of dollars). Sales for 2021 were $350 million, while net income for the year was $14.35 million. Cavuto paid dividends of $5.74 million to common shareholders. The firm is operating at full capacity. Assume that all ratios remain constant. a. If sales are projected to increase by $70 million, or 20%, during 2022 , use the AFN equation to determine Cavuto's projected external capital requirements. b. Using the AFN equation, determine Cavuto's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ external funds