Kerikeri Plumbing Supplies' Balance Sheet is presented below. The business year ends on December 15. The balance sheet at year end is similar in percent of sales to that of previous years, and will continue to be in the future. Kerikeri had sales of $200 million in the previous year, and is expecting a 20% increase in sales next year. The business does not run at full capacity and it can be assumed that the increase in sales can be carried out without the expansion of non- current assets. Of liabilities, only current liabilities are sensitive to changes in sales. Kerikeri Pluming Supplies Ltd. Balance Sheet, as of Dec 15, 2021 Assets in million $ Liabilities and Shareholders' Equity in million $ Cash 30 Accounts payable 14 Accounts receivable 24 Accrued wages 17 Inventory 40 Accrued taxes 7 Current assets 94 Current liabilities 38 Non-current assets 56 Long-term debt 28 Total liabilities 66 Common stock 40 Retained earnings 44 Total shareholders' equity 84 Total assets 150 Total liabilities and shareholders equity 150 Assume that the company has a net profit margin of 7% and a dividend payout ratio of 40%. (a) If the sales grow by 20% next year, determine how much money is needed to finance the growth? Blank 1: Enter the amount of required external funds. (Provide answer in $ millions using two decimals, e.g. if your answer is $5,271,984, enter 5.27, without $-sign and without the word "million"). (b) Prepare a pro forma balance sheet with any financing adjustment made to long- term debt. Fill the blanks below and submit your balance sheet together with your exam notes to the dropbox after the exam. Enter amounts in millions, use the same formatting as described in (a). Blank 2: Enter the pro forma current assets. Blank 3: Enter the pro forma total assets. Blank 4: Enter the pro forma total liabilities. Blank 5: Enter the pro forma retained earnings. (c) Prepare the following financial ratios for the original balance sheet (year 2021). Fill the blanks below. Blank 6: Calculate the current ratio of 2021, round to 2 digits Blank 7: Calculate the return on assets (%) for 2021, round to 2 digits Blank 8: Calculate the equity multiplier for 2021, round to 2 digits. (d) Based on the above ratios, indicate whether you expect the return on equity (ROE) to be higher or lower than the return on assets (ROA). No need to calculate the ROE. Enter either "higher" or "lower" and provide a rationale for your decision in your exam notes. Blank 9: I expect the ROE to be the word lower). than the ROA (type either the word higher or