P 18-7 (similar to) Question Help Jim's Espresso expects sales to grow by 101% next year Jim's changes its payout ratio from 90% to 70% of net income next year When the payout ratio was 90% there was excess financing in the amount of $4,380 Ji's developed the proforma financial statements given here to reflect the change in the payout ratio to 79% How will the net new financing change? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career Hint Determine the difference in financing by subtracting the financing required at 90% (54,380) from the financing required at 79% The financing required at 79% is $ (Round to the nearest dollar) i Data Table Click on the following icon for the pro forma income statement in order to copy its contents into a spreadsheet Click on the following icon for the pro forma balance sheet in order to copy its contents into a spreadsheet Pro Forma Financial Statements Income Statement Balance Sheet Sales $215,168 Assets Costs Except Depreciation (110,221) Cash and Equivalents $16,460 EBITDA $104,947 Accounts Receivable 2,213 Depreciation (6,540) Inventories 4,360 EBIT $98,407 Total Current Assets $23,033 Interest Expense (net) (385) Property Plant, and Equipment 11,065 Pre-tax Income $98,022 Total Assets $34,098 Income Tax (24,506) Net Income $73,516 Liabilities and Equity Accounts Payable $1 696 Debt 3,980 Total Liabilities $5,676 Stockholders' Equity $40 888 Total Liabilities and Equity $46,564