most recent financial statements for Maribel Corporation follow. Sales for year 2022 are projected to increase by 12 percent. Tax rate will be 25% in year 2022. The company maintains a constant dividend pay-out ratio. The firm is operating at full capacity.

Income Statement	2021		Balance Sheet 2021
Sales	60 320 580		Assets		Liabilities and Equity
Cost of goods sold	44 997 223		Current assets		Current liabilities
Operating expenses	7 648 994		Cash	683 960	Accounts payable	1 391 933
Depreciation	2 703 271		Accounts receivable	1 098 445	Notes payable	3 178 429
Operating income	4 971 092		Inventory	1 609 258	Total CL	4 570 361
Interest	944 711		Total CA	3 391 663
Taxable income	4 026 382				Long-term debt	8 208 102
Taxes	1 006 596		Fixed assets
Net income	3 019 786		Net PP&E	26 555 093	Shareholder equity
Dividends	918 526				Common stock	599 322
Addition to retained earnings	2 101 260				Retained earnings	16 568 971
					Total equity	17 168 293
			Total Assets	29 946 756	Total L&E	29 946 756

Instructions:

1. Calculate internal and sustainable growth rates. Explain what they mean. (10 points)

2. Using the percentage of sales approach, prepare proforma financial statements for year 2022. (20 points)

3. Calculate the amount of external financing needed in 2022. What financing options are available for the company? (5 points)

4. Assuming that the company operated at 85% capacity in 2021, re-calculate the amount of external financing needed in 2022. (5 points)

5. Discuss the role of financial planning. (5 points)