Question 2) (15 points) The most recent financial statements for XYZ Corporation are as follow. Sales for 2022 projected to grow by 50%. Interest expense will remain constant, the tax rate, debt, and se dividend payout ratio will remain constant. Costs, other expenses, current assets, fixed assets. and accounts payable increase proportionately with sales. XYZ Corporation Income Statement 2021 Sales $1,050,000 Costs of Goods Sold $800,000 Other Expenses $12,000 EBIT Interest EBT $238,000 $21,000 $217,000 Tax (25%) $54,250 Net Income $162,750 Dividends $32,550 Addition to R/E $130,200 2022 XYZ Corporation Balance Sheet as of December 31, 20xx 2021 2022 2021 2022 Assets Liabilities Current Assets Current Liabilities Cash $35,000 Accounts Payable $74,000 Accounts Receivable $55,000 Notes Payable $14,000 Total Current Inventory $80,000 Liabilities $88,000 Total Current Assets $170,000 Long-Term Debt $135,500 Fixed Assets Common Equity $18,000 Net Plant and Equipment $351,500 Retained Earnings $280,000 Total Liabilities and Total Assets $521,500 Equity $521,500 Page 4 of 14