The most recent income statement and balance sheet for the T. McGraw Corporation are as follows: T. MCGRAW CORPORATION Financial Statements Income Statement Sales $10,000 - Costs 7,500 Taxable Income $ 2,500 - Taxes (34%) 850 Net Income $ 1,650 Retained earnings $ 660 Dividends $ 990 Balance Sheet Current assets $ 5,000 Total debt $ 6,000 Fixed assets 10,000 Owners Equity 9,000 Total $15,000 Total $15,000 McGraw is forecasting a 20% increase in sales for the coming year; assets vary directly with sales, while liabilities and equity do not (this condition applies for 5.6 only). (5.1) profit margin (PM) (5.2) retention ratio (R) (5.3) return on assets (ROA) (5.4) return on equity (ROE) (5.5) debt equity ratio (D/E). (5.6) Use the ratios computed to calculate the external financing needed (EFN).