Boring Corporation has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity.

Balance Sheet (in $ millions)
Assets	Liabilities and Shareholders' Equity

Cash	$9	Accounts payable	$4
Accounts receivable	13	Accrued wages	3
Inventory	19	Accrued taxes	2
Current assets	41	Current liabilities	9
Capital assets	41	Long-term debt	20

Common stock 25

Retained earnings 28

Total assets$82

Total liabilities and shareholders' equity $82

The firm has an aftertax profit margin of 9 percent and a dividend payout ratio of 20 percent.

a. If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Do not round intermediate calculations. Enter the answer in millions. Round the final answer to 3 decimal places.)

The firm needs $ million in external funds.

b. Prepare a pro forma balance sheet with any financing adjustment made to long-term debt. (Do not round intermediate calculations. Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Enter the answers in millions. Round the final answers to 2 decimal places.)

Balance Sheet ($ millions)
Assets	Liabilities and Shareholders' Equity
(Click to select) Accounts receivable Cash Inventory Capital Asset Prepaid expenses	$	(Click to select) Accounts payable Accrued taxes Retained earnings Common stock Accrued wages	$
(Click to select) Capital Asset Accounts receivable Prepaid expenses Cash Inventory		(Click to select) Accrued wages Retained earnings Accounts payable Common stock Long-term debt
(Click to select) Accounts receivable Prepaid expenses Cash Inventory Gross plant		(Click to select) Accrued taxes Retained earnings Accounts payable Common stock Long-term debt

Current assets	$
(Click to select) Inventory Accounts Receivable Cash Capital Assets Accrued wages

Total assets

$

CURRENT LIABILITIES

(Click to select) Common stock Accrued wages Accounts payable Accrued taxes

$

(Click to select) Common stock Accrued wages Accounts payable Accrued taxes

$

(Click to select) Common stock Accrued wages Accounts payable Accrued taxes

$

Total liabilities and shareholders' equity

$

c. Calculate the current ratio and total debt to assets ratio for each year. (Do not round intermediate calculations. Round the final answers to 1 decimal places.)

Year 1	Year 2
Current ratio	X
Total debt / assets	%