QUESTION 3 Using the 2019 financial statements for OTEC Corporation and this additional information, prepare a proforma income statement and a balance sheet for the year 2020. Determine the external financing needed (EFN) and assume that if the EFN is positive, the company will increase long term debt, and if EFN is negative, the company will pay back some long term Sales for next year are expected to increase by GHC300,000 TO GHC1,300,000. The fimm is running efficiently and at full capacity so that all assets and spontaneous liabilities are expected to increase proportionally with sales. The dividend payout ratio for 2020 will be debt. 40% OTEC Corporation 2019 Financial Statements (GHC 1,000,000 600.000 INCOME STATEMENT Sales Operating Expenses EBIT Interest Expense EBT Taxes (40%) Net Income 400,000 200,000 200,000 80,000 120.000 BALANCE SHEET Cash Accounts Receivable (GHC 100,000 300,000 250,000 850.000 1.500.000 Inventory Property. Plant &Equipment TOTAL ASSETS 180,000 20,000 Accounts Payable Accruals Short-term notes payable 100,000 Long-term Debt Common Stock Retained Earnings TOTAL LIABILITIES and Equity 800,000 100,000 300.000 1.500.000