PRO FORMA STATEMENTS AND RATIOS:

Cavuto Limited makes bulk purchases of mens and womens shoes, stocks them in conveniently located warehouses, and ships them to its chain of retail stores. Cavutos balance sheet as at December 31, 2021, is shown here (millions of dollars).

Sales for 2021 were $350 million, while net income for the year was $14.35 million. Cavuto paid dividends of $5.74 million to common shareholders. The firm is operating at full capacity. Assume that all ratios remain constant. Please answer all three questions , A, B, C down below

A.If sales are projected to increase by $70 million, or 20%, during 2022, use the AFN equation to determine Cavutos projected external capital requirements. B.Using the AFN equation, determine Cavutos self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ external funds? C.Construct Cavutos pro forma balance sheet for December 31, 2022. Assume that all external capital requirements are met by bank loans and are reflected in notes payable. Assume the companys profit margin and dividend payout ratio remain constant.