Houdini Homes: Income Statement (M5) Sales Cost of Goods Sold SG&A (Selling, General and Admin) Expenses Depreciation Expense Earnings Before Interest & Tax (EBIT) Interest Expense Earnings Before Tax Taxes (25%) Net Income Dividends YO Y1 1400 700 200 86 414 380 95 285 100 YO Y1 Houdini Homes: Balance Sheet (M) Cash Accounts Receivable Inventories Current Assets 100 300 500 Gross Property, Plant & Equipment (PPE) Accumulated Depn. Net Property, Plant & Equipment TOTAL ASSETS Accruals Accounts Payable Current Liabilities Long Term Debt 300 100 1,000 25 150 175 425 100 300 1,000 Common Stock Retained Earnings Total Liabity & Equity a. Forecast the income statement and balance sheet for Y1. The following growth rates are relative to the prior year. Sales grow by 20% over the prior year. 30%. Selling, General and Administration (SG&A) expenses grow by 10%. Depreciation expense rises to 96M in Y1. Interest expense remains 34M. The tax rate is 25%. Accounts receivable grows by 25% over prior year. Inventory grows by 30%; and accounts payable grows 20%. The firm will need 150M more in gross property, plant and equipment (PPE). The following accour Cost of goods sold grows by will not change (same dollar amount): dividends, cash, accruals, long-term debt and common stock. Do NOT balance the balance sheet. Calculate the external (additional) funds needed. The external funds needed-total assets - (total liabilities and equity) before balancing the balance sheet. What are two alternatives for balancing the balance sheet? b