ACC 2212-Comprehensive Problems Problem 2-Mansfield Corporation Mansfield Corporation had 2019 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows: Percent 5% Cash Accounts receivable. inventory. 15 20 40 15 10 10% Net fixed assets. Accounts payable. Accruals Profit margin after taxes. The dividend payout rate is 50 percent of earnings, and the balance in retained earnings at the end of 2019 was $33 million. Notes payable are currently $7 million. Long-term bonds and common stock are constant at $5 million and $10 million, respectively. a. How much additional external capital will be required for next year if sales increase 15 percent? (Assume that the company is already operating at full capacity.) b. Prepare a pro forma balance sheet for 2020 assuming that any external funds being acquired will be in the form of notes payable. Page 3 of 11