ABC Inc. is a juice producer which has been growing steadily for the past 5 years, According to the expected market demand, the company is planning to grow its sales at 15% next year. Since the company is currently operating at full capacity, fixed assets will also grow proportional to sales, same as current assets and current liabilities. However, long-term debt and equity will not grow proportional to sales but rather management will decide upon their next year level based on an acceptable level of debt to equity ratio as well as ROE ratio. The company has a dividend pay-out ratio of 40%, which the management want to maintain in order to meet the shareholders' expectations. Below are the financial statements of ABC Inc. for the year ending Sept 2020. 1) Determine the value of the "External money needed" for next year. (Do not round intermediate calculations. Round the final answer to 2 decimal places, Omit commas, spaces and $ sign) [ (10 Points) ABC Inc. Income statement ABC's Balance Sheet Amounts In 000's Amounts In 000's Sep-20 Sep-20 Sep-20 Sales 5,700 Cash 200 Accounts Payable 2,000 Costs 4,200 Accounts Receivables 1,600 Accrued Expenses 200 Taxable Income 1,500 Inventory 2,100 Current liabilities 2,200 Taxes (34%) 510 Current assets 3,900 Long-term debt 3,750 Net income 990 Fixed assets 8,100 Equity 6,050 Total Assets 12,000 Total Llab & Equity 1 12,000 4 Comment on your answers to questions (2) & (3), how would an increase in debt or equity impact the ROE and debt to equity ratios? (8 Points)