Question #1 (Chapter 4) The most recent financial statements for Hopington Tours Inc. follow. Sales for 2016 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 20 percent growth rate in sales? (10 points) Hopington Touts INC. 2015 Statement of Comprehensive Income Sales Costs Other expenses EBIT $929,000 723,000 19,000 Interest paid Taxable income Taxes (35%) $187,000 14,000 $173,000 60,550 Net Income $112,450 Dividends $33,735 Addition to retained earnings $78,715 HOPINGTON TOURS INC. Statement of Financial Position as of December 31, 2015 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,300 Accounts payable $ 68,000 Accounts receivable 40,700 Notes payable 17,000 Inventory 86,900 Total $ 85,000 Total $152,900 Long-term debt $158,000 Fixed assets Owners' equity Net plant and Common stock and paid-in surplus $140,000 equipment $413,000 Retained earnings 182,900 Total $322,900 Total assets $565,900 Total liabilities and owners' equity $565,900