Douglass Enterprises Income Statement for the Present Year Sales Costs Taxable Income Taxes Net Income Dividends Addition to ret. earnings Douglass Enterprises Balance Sheet for the Present Year $4,840 $4,120 $ 720 $ 245 $ 475 $ 190 $ 285 Cash $1,010 Accounts payable $ 536 Accounts rec. $ 302 Notes payable $1,500 Inventory $ 361 Current liabilities $2,036 Current assets $1,673 Long-term debt $1,200 Fixed assets $5,200 Common stock $3,000 Retained earnings $ 637 Total assets $6,875 Total liabilities. & $6,873 equity 1) The sales of the company are expected to increase by 14% next year. The firm is currently producing at full capacity. The company wishes to maintain a constant debt-equity ratio and a constant dividend payout ratio. Calculate the external financing amount for the company. (20 marks) 2) What is the Internal growth rate for the company? (20 marks) Focus