Income Statement ($ in Millions) 2015 2016 Sales 800 Costs 500 Taxable Income 300 Taxes 104 Net Income 196 84 Dividends Addition to Retained Earnings 112 Other Information Forecasted Growth Rate in Sales 10% Assets Current Asus 2015 2015 2016 600 170 Cash Accounts Receivable Inventory Total Current Assets 300 600 100 270 1500 Balance Sheet ($ in Millions) 2016 Liabilities and Owners' Equity Current Liabilities Accounts Payable Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Debt Total Long-Term Liabilities Owners' Equity Common Stock Retained Earnings Total Owners' Equity Total Llab, and Owners' Equity Fixed Assets Net Fixed Assests 1200 1200 700 450 280 730 Total Assets 2200 2200 External Financing Needed Compute: 1. Dividend Payout Rate 2. Tax Rate 3. Prepare the Pro Forma Statements assuming the company is operating at 80% CAPACITY