The following tables contain financial statements for Shell plc 2021. It forecasts that the ratio of revenues to total assets will remain at 67%. Annual depreciation is 9.77% of the fixed assets at the end of the year. Interest is 1.57% of end-of-year debt. Taxes rate is on average 30.84%. Fixed costs are expected to remain at $21,440 millions, if the expansion of business is moderate, and variable costs at 70% of revenue. The companys policy is to pay out 30% of net income as dividends and to maintain a book debt ratio of 57% of total capital.

Condensed Income Statement 2021 (Figures in $ millions)
Revenue	272,657
Fixed Costs	21,440
Variable Costs (70% of Revenue)	190,860
Depreciation	26,921
Interest (1.57% of end-of-year debt)	3,607
Taxable Income	29,829
Taxes (at 30.84%)	9,199
Net Income	20,630
Dividends	6,189
Addition to Retained Earnings	14,441

Condensed Balance Sheet as at the end of 2021 (Figures in $ millions)
Assets
Working capital/Current Assets	128,765
Fixed assets	275,614
Total Assets	404,379
Liabilities and shareholders equity
Debt	229,053
Equity	175,326
Total liabilities and shareholders equity	404,379

Required:

1. Shell plc now plans to expand moderately and will increase net fixed assets (i.e., assets net of depreciation) by a reasonable amount which would not have a significant impact of other costs. Assume that you are the CFO of Shell plc, propose a reasonable/moderate amount of the increase of net fixed assets, and then use it to produce the following two planning statements for 2022. Assume that working capital/current assets will equal 47% of fixed assets. Round the numbers in the statements to $million. Reasonable rounding error is allowed.

(a) income statements and

balance sheets

& Will the external financing be required based on the increase of net fixed assets that you proposed? If yes, how much? If no, explain why.