Suppose Micks is projecting a 20% increase in sales for the coming year, and that cost of goods sold and general/administrative expenses remain a constant percentage of sales. Also assume that the amount of depreciation and interest paid and the firms tax rate (35%) remain unchanged. Create the Pro Forma Income Statement for 2005 . Assume the firms divi dend payout is 50%. What will the f irm pay out in dividends in 2005 ? Assume all information given in part A. Also, assume all assets and current liabilities are proportional to sales but long - term debt and equity are not proportional to sales. If the firm s tax rate remains unchanged, the dividend payout is 50%, what is the external financing needed (EFN) for 2006? Create the Pro Forma Balance Sheet for 2005. C. Given all the information in part A & B. If the firm is only operating at 82% of capacity, what a re full capacity sales and what is the external financing needed (EFN) for 2005 ? D. Suppose Micks wishes to maintai n a sustainable growth rate of 30% per year. Is this growth rate possible? What must the dividend payout ratio be to make this feasible? Micks Place Assets 2004 2005 Liabilities & Owner's Equity 2004 2005 Current Assets Current Liabilities Cash 815 906 Accounts Payable 983 1292 Accounts Receivable 2405 2510 Notes Payable 720 840 Inventory 4608 4906 Other 105 188 Total CA 7828 8322 Total CL 1808 2320 Fixed Assets Long - term Debt 4817 4960 Net PPE 15164 19167 Owner's Equity Total Assets 22992 27489 Common Stock 10000 10000 Retained Earnings 6367 10209 Total OE 16367 20209 Total Liabilities & OE 22992 27489 ncome State ment 2005 Sales 33500 Cost of Good Sold 18970 Depreciation 1980 EBIT 12550 Int 486 EBT 12064 Taxes 4222 NI 7842