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. Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet (in $ millions) Liabilities and Shareholders' Equity $4 Accounts payable 10 Accrued wages 20 Accrued taxes 34 Current liabilities 34 Long-term debt Common stock Retained earnings $68 Total liabilities and shareholders' equity $12 10 8 30 10 15 13 $68 Total assets The firm has an aftertax profit margin of 2 percent and a dividend payout ratio of 35 percent. a. If sales grow by 20 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 $1 million in external funds. 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.) Assets Balance Sheet ($ millions) Liabilities and Shareholders' Equity (Click to select) (Click to select) . $ (Click to select) . (Click select) (Click to select) (Click to select) . DDDDDD Current assets Current liabilities $ (Click to select) (Click to select) $ (Click to select) (Click to select) Total assets 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 X Current ratio Total debt / assets Balance Sheet ($ millions) Liabilities and Shareholders' Equity (Click to select) Cash (Click to select) Accounts receivable Capital Asset Prepaid expenses Inventory 1 + (Click to select) (Click to select) 0000 000 Current liabilities $ (Click to select) Accounts payable Accrued wages (Click to select) $ Total assets 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 Total debt / assets Assets Cash Accounts receivable Prepaid expenses + Balance Sheet ($ millions) Liabilities and Shareholders' Equity Click to select) Common stock Accounts payable ) Accrued taxes Retained earnings Accrued wages IA Accounts payable Accrued wages . (Click to select) . III000 Current assets $ (Click to select) $ Total assets 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 X Current ratio Total debt / assets Assets Cash Balance Sheet ($ millions) Liabilities and Shareholders' Equity (Click to select) (Click to select) (Click to select) Accounts receivable Prepaid expenses Current liabilities $ Accounts payable IBRER Accrued wages Current assets Click to select) Cash Inventory Accounts Receivable Capital Assets Accrued wages $ (Click to select) 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 X Current ratio Total debt / assets % Assets Balance Sheet ($ millions) Liabilities and Shareholders' Equity (Click to select) Cash . (Click to select) Accounts receivable Prepaid expenses Current assets $ (Click to select) Long-term debt Accrued wages Accounts payable Accrued taxes [ 010 001010 (Click to select) $ (Click to select) Total assets 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 Total debt / assets %