Liabilities& Owner's 2004 815 4608 2005 Current Assets 2004 2005 Current Liabilities Accounts Receivable In 906 2510 4906 Accounts Payable Notes Payable Other 983 1292 840 188 1808 2320 4817 4960 720 105 Total CA Fixed Assets 7828 Total CL Long-term Debt Owner's Equity Net PPE 15164 19167 22992 27489 Total Assets Common Stock Retained Earnin 10000 10000 6367 10209 16367 20209 22992 27489 Total OE Total Liabilities & OE Income Statement Sales Cost of Good Sold 2005 33500 18970 1980 12550 486 12064 EBIT Int EBT Taxes NI 7842 A. Suppose Mick's is projecting a 20% increase in sales for the coming year and that cost of goods sold and general/administrative expenses remain a constant percentage of sales. Also assume that the amount of depreciation and interest paid and the firm's tax rate (35%) remain unchanged. Create the Pro Forma Income Statement for 2005, Assume the firm's dividend payout is 50%. What will the firm pay out in dividends in 2005? B. Assume all information given in part A. Also, assume all assets and current liabilities are proportional to sales but long-term debt and equity are not proportional to sales. If the firm's tax rate remains unchanged, the dividend payout is 50% what is the external financing needed (EFN) for 2006? Create the Pro Forma Balance Sheet for 2005. C. Given all the information in part A & B. Ifthe firm is only operating at 82% of capacity, what are full capacity sales and what is the external financing needed (EFN) for 2005? D. Suppose Mick's wishes to maintain a sustainable growth rate of 30% per year. Is this growth rate possible? What must the dividend payout ratio be to make this feasible