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Cholesterol Dalry Products has plants in five provinces and operates a very large home delivery service Sales last year were $100 million, and the balance

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Cholesterol Dalry Products has plants in five provinces and operates a very large home delivery service 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 5 millions) Assets Liabilities and Shareholders Equity Cash Accounts payable 55 Accounts receivable Accrued wages 4 Inventory 25 Accrued taxes Current assets $43 Current liabilities Capital assets Long term debt Common stock 25 Retained earnings Total Habilities and shareholder's Total assets equity 3 $12 20 43 29 The firm has an attestax profit margin of 2 percent and a dividend payout ratio of 25 percent. a. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the expansion (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. (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 3 decimal places.) b. Prepare a pro forma balance sheet with any financing adjustment made to long term debt. (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 3 decimal ploces.) Balance Sheet (5 millions) Liabilities and Shareholdere Fuity Current assets Current liabilities (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Assets Current assets (Click to select) Current liabilities (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 totio for each year. (Round the final onswers to 2 decimal places.) Year Current ratio Total debt / assets

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