Assume that East Coast Yachts is currently producing at 100 percent of capacity and sales are expected to grow at 20% next year. Fixed assets will not vary as a percentage of sales. Instead, the company must set up an entirely new line at a cost of $95,000,000, and the new line will be depreciated at 4.63% every year. Prepare pro forma income statements and balance sheets. Calculate external funds needed. Without external equity financing, what do you recommend the firm can do to implement the expansion plans? This is Closing case of chapter 3 , corporate finance third edition by ross westerfield. Thank you.