Marvin industries Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, teams, and organizations to create,

publish, promote, and monetize their digital content. The company is forecasting operations to determine the additional financing that will be needed to support its operations and to assess whether

the firm's anticipated performance is in line with the company's own general targets and investors' expectation.

Marvin Industries: balance sheet as of December $31,2020($Thousands of dollars$)$

Marvin Industries: Income Statement for December $31,2020($Thousands of dollars$)$

Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Marvin has arranged to sell $$5,000$ of new common stock in $2021$ to meet some of its financing

needs. The remainder of its financing needs will be met by issuing new long$-$term debt at the end of $2021.$ The company's net profit margin on sales is $9\mathrm{.}75\%,$ and $60\%$ of earnings will be paid out as

dividends. Marvin is operating at full capacity, so its assets must grow at the same rate as projected sales.

a$.$ What were Marvin's long$-$term debt and total liabilities for $2020?$

b$.$ Sales are projected to increase by $25\%$ over the $2020$ sales figure. Determine the forecasted change in company's sales over the forecasting period.

c$.$ Use the AFN equation to forecast Marvin's additional funds needed for the coming year to support the company's growth.

HINT: AFN A$0*\frac{?}{S0}$ LO$*\frac{?}{S0}$ payout