The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 300,000 Costs 200,000 EBIT $ 100,000 Interest expense 20,000 Taxable income $ 80,000 Taxes (at 21%) 16,800 Net income $ 63,200 Dividends $ 18,960 Addition to retained earnings $ 44,240 BALANCE SHEET, YEAR-END, 2019 Assets Liabilities Current assets Current liabilities Cash $ 6,000 Accounts payable $ 13,000 Accounts receivable 11,000 Total current liabilities $ 13,000 Inventories 33,000 Long-term debt 200,000 Total current assets $ 50,000 Stockholders equity Net plant and equipment 240,000 Common stock plus additional paid-in capital 15,000 Retained earnings 62,000 Total assets $ 290,000 Total liabilities plus stockholders' equity $ 290,000 Sales and costs are projected to grow at 30% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at 75% capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 0.30.