The 2022 partical financial statements of XYZ Inc. are shown below. Complete the 2022 financial statements and forecast XYZ's 2023 income statement and balance sheet. Using the following assumption:

(1) The retained earnings for 2021 is $1000. (Hint: this assumption decides the Retained Earning for 2022) (2) The current operating capacity is 78%. (Hint: this assumption decides the net fixed asset for 2023) (3) Sales is expected to grow 25% from 2022 to 2023. (4) Depreciation is expected to growth 5% from 2022 to 2023. (Hint: this assumption decides the depreciation for 2023) (5) Interest expense, short-term debt, long-term debt and common stock remain the same in 2023 as in 2022. (6) XYZ Inc. will not issue any new stock or pay out special dividends. (7) The tax rate is 25%

Question 2: Based on the forecast balance sheet in 2023, will XYZ Inc. need external financing? If so, how will XYZ Inc. raise the funding? If not, what will XYZ Inc. do?