Micks PlaceAssets	2004		2005	Liabilities & Owner's Equity	2004		2005
Current Assets				Current Liabilities
Cash	815		906	Accounts Payable	983		1292
Accounts Receivable	2405		2510	Notes Payable	720		840
Inventory	4608		4906	Other	105		188
Total CA	7828		8322	Total CL	1808		2320
Fixed Assets		Long-term Debt		4817		4960
Net PPE		15164		19167		Owner's Equity
Total Assets	22992		27489	Common Stock	10000		10000
Retained Earnings			6367		10209
Total OE			16367		20209
Total Liabilities & OE			22992		27489

Income Statement 2005

Sales 33500

Cost of Good Sold 18970

Depreciation 1980

EBIT 12550

Int 486

EBT 12064

Taxes 4222

NI 7842

Suppose Micks 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 firms tax rate (35%) remain unchanged. Create the Pro Forma Income Statement for 2005. Assume the firms dividend payout is 50%. What will the firm pay out in dividends in 2005?

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 firms 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.

Given all the information in part A & B. If the firm is only operating at 82% of capacity, what are full capacity sales and what is the external financing needed (EFN) for 2005?

Suppose Micks 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?