CASE 1 (45 points) The most recent financial statements for Marvel Corporation follow. Sales for the year 2022 are projected to increase by 12 per cent. The tax rate will be 25% in the year 2022. The company maintains a constant dividend pay-out ratio. The firm is operating at full capacity. 3-5.9 The student demonstrates an insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student. Income Statement Sales Cost of goods sold Operating expenses Depreciation Operating income Interest Taxable income Taxes Net income Dividends Addition to retained earnings 2021 50 680 390 37 805 950 6 426 562 2 271 245 4 176 633 793 731 3 382 902 845 726 2 537 176 771 731 1 765 445 Balance Sheet 2021 Assets Cash Accounts receivable Inventory Total CA Liabilities and Equity Current assets Current liabilities Accounts payable Notes payable Total CL 574 653 922 896 1 352 073 2 849 621 1 169 480 2 670 465 3 839 945 Fixed assets Net PP&E Total Assets Instructions: 22 311 166 25 160 787 Shareholder equity Common stock Retained earnings Total equity Total L&E 503 541 13 920 986 14 424 526 25 160 787 Long-term debt 6 896 317 1.1 Calculate internal and sustainable growth rates. Explain what they mean. (10 points) 1.2 Using the percentage of sales approach, prepare proforma financial statements for the year 2022. (20 points) 1.3 Calculate the amount of external financing needed in 2022. What financing options are available for the company? (5 points) 1.4 Assuming that the company operated at 85% capacity in 2021, re-calculate the amount of external financing needed in 2022. (5 points) 1.5 Discuss the role of financial planning. (5 points)