The financial management team of BBC Transport is getting ready for its annual account review with is banker. The company is considering an expansion next year, and this would require additional financing. The CFO needs to prepare a financial forecast and determine how much financing they will need. Last year, BBC had sales of $100 million and was already operating at capacity. The sales and marketing team is confident this expansion would result in a sales increase of 20%. Balance Sheet (Millions) Assets Liabilities & Shareholders Equity Cash $6 Accounts Payable $5 Accounts Receivable 12 Accrued Wages 4 Inventory 25 Accrued Taxes 3 Current Assets 43 Current Liabilities 12 Long-term Debt 20 Capital Assets 43 Common Stock 25 Retained Earnings 29 TOTAL Assets 86 TOTAL Liabilities & Shareholders Equity 86 Other Financial Highlights The after-tax profit margin is 2% Dividend payout is 25% QUESTIONS: a) What is the required new funds needed to finance the expansion? b) Prepare a pro-forma balance sheet with any financing adjustment made to long term debt. Use the template below: c) What is the current ratio and total debt-to-assets ratio for each year?