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Carter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of

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Carter Paint Company 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. The firm has an aftertax profit margin of 6 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 caiculations. 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 llabilities in order of their liquidity. Enter the answers in millions. Round the final answers to 2 decimal places.)

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