Nittinan, Inc. 2023 Income Statement ($ in millions) Net sales $3,345,000 Less: Cost of goods sold 2,495,000 Less: Depreciation expense 20,000 Less: Other expenses 85,000 Earnings before interest and taxes 745,000 Less: Interest paid 100,000 Taxable Income $645,000 Less: Taxes (40%) 258,000 Net income $387,000 Dividends Additions to Retained Earnings Nittinan, Inc. 2022 and 2023 Balance Sheets ($ in millions) $116,100 $270,900 2022 2023 2022 2023 Cash 175,000 171,000 Accounts payable 170000 141500 Accounts rec. 115,000 155,000 Notes payable 10000 11500 Inventory 95,000 105,000 Total 180000 153000 Total 385,000 431,000 Long-term debt 495000 447100 Net fixed assets 1,000,000 1,150,000 Common stock 489700 489700 Total assets 1,385,000 Retained earnings 1,581,000 Total liab.& equity 220300 491200 1385000 1581000 1. Use the financial statements above for Nittinan, Inc. and answer the following questions. (i) Find Nittinan's cash flow from assets for 2023 by finding its operating cash flows, net capital spending, change in net working capital. (ii) What are the Nittinan's cash flow to creditors and cash flow to stockholders? Interpret the positive and negative signs of your results in (i) and (ii). 2. Use the financial statements above for Nittinan, Inc. and draw pro-forma statements for the year 2024. Sales are projected to grow by 11 percent. Costs of goods sold, depreciation expense, other expenses, current assets, and accounts payable increase spontaneously with sales (that is these items grow proportionally with growth in sales). Interest expense (amount) will remain constant. Dividend payout rate and the tax rate will remain constant. Calculate the full capacity sales if the firm is operating at 75% of its capacity and no new debt or equity is issued. Assuming that the firm is operating at 75% capacity, what is the external financing needed (EFN) to support the 11 percent growth rate in sales?