Forecasted Statements and Ratios Upton Computers makes bulk purchases of smali computers, stocks them in conveniently located warehouses, ships them to its chain of retaif stores, and has a staff to advise customers and help them set up their new computers, Upton's balance sheet as of December 31, 2019, is shown here (milions of doliars): Sales for 2019 were $250 mallion and net income for the year was $7.5 million, so the firm's profit margin was 3.0%, Upton paid dividends of $3 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at fult capacity, Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remoin constant in 2020 . Do not round intermediate calcutations. a. If sales are projected to increase by $45 million, or 18%, during 2020 , use the AFN equation to determine Upton's projected external capalal requirements. Enter your answers in milliofs; For example, an answer of $10,550,000 should be entered as 10,55, Round your answer to two decimal places. 3) million b. Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places: \% c. Use the forecasted financial statement method to forecast Upton's Balance sheet for December 31, 2020, Assume that all adsitional extemal capital is rased as a line of credit at the end of the year and is reflected (because the debt is added at the end of the vear, there wa be no additional interest expense dudte the new debt). Assume Upton's profit marpin and dividend parout ratio will be the same in 2020 as they were in 2019 . What is the ameunt of the ine of credit reported on the 2020 forecasted balance sheets? (itint You don t need to forecant the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and eividend payout ratio; these foures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually corstructing a full income statement) Enter your answers in millions. For example, an answer of c. Use the forecasted financial statement method to forecast Upton's balance sheet for December 31,2020 . Assume that all additional external cepital is raised as a line of credit at the end of the vear and is reflected (because the debt is added at the end of the vear, there wilt be no additional interest expense due to the new debt). Assume Upton's profit margin and dividend payout ratio will be the same in 2020 as they were in 2019 . What is the amourt of the line of credit reported on the 2020 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addibion to retained earnings for the balance sheet without actually constructing a full income statement.) Enter your answers in mallions. For example, an answer of $10,550,000 should be entered as 10.55 . Round your answers to two decimal places. Forecasted Statements and Ratios Upton Computers makes bulk purchases of smali computers, stocks them in conveniently located warehouses, ships them to its chain of retaif stores, and has a staff to advise customers and help them set up their new computers, Upton's balance sheet as of December 31, 2019, is shown here (milions of doliars): Sales for 2019 were $250 mallion and net income for the year was $7.5 million, so the firm's profit margin was 3.0%, Upton paid dividends of $3 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at fult capacity, Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remoin constant in 2020 . Do not round intermediate calcutations. a. If sales are projected to increase by $45 million, or 18%, during 2020 , use the AFN equation to determine Upton's projected external capalal requirements. Enter your answers in milliofs; For example, an answer of $10,550,000 should be entered as 10,55, Round your answer to two decimal places. 3) million b. Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places: \% c. Use the forecasted financial statement method to forecast Upton's Balance sheet for December 31, 2020, Assume that all adsitional extemal capital is rased as a line of credit at the end of the year and is reflected (because the debt is added at the end of the vear, there wa be no additional interest expense dudte the new debt). Assume Upton's profit marpin and dividend parout ratio will be the same in 2020 as they were in 2019 . What is the ameunt of the ine of credit reported on the 2020 forecasted balance sheets? (itint You don t need to forecant the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and eividend payout ratio; these foures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually corstructing a full income statement) Enter your answers in millions. For example, an answer of c. Use the forecasted financial statement method to forecast Upton's balance sheet for December 31,2020 . Assume that all additional external cepital is raised as a line of credit at the end of the vear and is reflected (because the debt is added at the end of the vear, there wilt be no additional interest expense due to the new debt). Assume Upton's profit margin and dividend payout ratio will be the same in 2020 as they were in 2019 . What is the amourt of the line of credit reported on the 2020 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addibion to retained earnings for the balance sheet without actually constructing a full income statement.) Enter your answers in mallions. For example, an answer of $10,550,000 should be entered as 10.55 . Round your answers to two decimal places