Sales are projected to increase 25%. The dividend payout ratio is expected to remain constant and the company is operating at full capacity. Prepare the current and pro forma income statements and balance sheets to:

1. Calculate how much external financing is needed, if any.

2. Using the information, calculate the sustainable growth rate.(Enter as a whole percentage without the % sign)

Accounts Payable	$6,000	Accounts Receivable	$5,000	Cash	$3,000
Common Stock	$13,000	Costs	$17,000	Fixed Assets	$30,000
Inventory	$7,000	Long-Term Debt	$15,000	Notes Payable	$3,000
Retained Earnings	$8,000	Sales	$20,000
Tax Rate	34%	Dividend Payout Ratio	40%