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NEED ANSWER ASAP to complete an EXAM: The Optical Scam Company has forecast a sales growth rate of 25 percent for next year. The current

NEED ANSWER ASAP to complete an EXAM:

The Optical Scam Company has forecast a sales growth rate of 25 percent for next year. The current financial statements are shown here:

Income Statement
Sales $ 32,000,000
Costs 26,309,400
Taxable income $ 5,690,600
Taxes 1,991,710
Net income $ 3,698,890
Dividends $ 1,479,556
Addition to retained earnings 2,219,334

Balance Sheet
Assets Liabilities and Equity
Current assets $ 7,360,000 Short-term debt $ 7,040,000
Long-term debt 2,240,000
Fixed assets 18,560,000
Common stock $ 6,070,000
Accumulated retained earnings 10,570,000
Total equity $ 16,640,000
Total assets $ 25,920,000 Total liabilities and equity $ 25,920,000

a.

Calculate the external financing needed for next year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

External financing needed $

b-1.

Prepare the firms pro forma balance sheet for next year. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Balance Sheet
Assets Liabilities and equity
Current assets $ Short-term debt $
Long-term debt
Fixed assets
Common stock $
Accumulated retained earnings
Total equity
Total assets $ Total liabilities and equity $

b-2.

Calculate the external financing needed. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

External financing needed $

c.

Calculate the sustainable growth rate for the company based on the current financial statements. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Sustainable growth rate %

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