Corporate Finance Problem

Using the following information, answer the questions below:

MoonStar expects it depreciation expense interest expense in developing in about a man constant the tax rate will also remain constant sells increase by 9% for 2020. Depreciation expense, Interest expense and dividend payout amount will remain constant; the tax rate will also remain constant. Cost of goods sold, current assets, and accounts payable increase at sales, the firm is operating out at 75% capacity, and no new debt or equity is issued.

1. Calculate the firm's full capacity sales.

2. Calculate external financing needed (EFN) using forecasted income statement and balance sheet.

Income Statement (six millions) 20) 2020 $1.0000 Net sales $350.D $120.0 5900 54.100 Less Cost of goods sold La Deprecisi esprit Les Other Espen Earning before interest and taxes Less loterest paid Taxable income Less Taxes (10) Not income $100.0 53400 5136.0 5204.0 Dividends $175.2 Additions to Retained Earnings MoonStar, Inc. 2018 and 2019 Balance Sheet ( in illis) 2014 2020 2019 20:20 SON 137.8. Accounts rec. 245.0 550 Accounts payable Nodes payable Total Long-term debe Fevestory 315. 1928 Total 614 7070 Net fixed sets 1 RON Common stock 6650 Retained naming Tetes 1916. Total lab.& Equity 19106 (A) Calculate the firm's full capacitysales. () Calculate External Financing Needed (OR) using forecasted income statements and balance sheet (You may copy ice statement and balance sheet to the answer space below and estimate the numbers for 2020)