The Optical Scam Company has forecast a sales growth rate of 25 percent for next year. The current financial statements are shown here:

Income Statement

Sales

$

32,100,000

Costs

26,512,400

Taxable income

$

5,587,600

Taxes

1,955,660

Net income

$

3,631,940

Dividends

$

1,452,776

Addition to retained earnings

2,179,164

Balance Sheet

Assets

Liabilities and Equity

Current assets

$

7,370,000

Short-term debt

$

7,383,000

Long-term debt

5,162,750

Fixed assets

18,952,000

Common stock

$

1,707,250

Accumulated retained earnings

12,069,000

Total equity

$

13,776,250

Total assets

$

26,322,000

Total liabilities and equity

$

26,322,000

a.

Calculate the external financing needed for next year.

b-1.	Prepare the firms pro forma balance sheet for next year. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Balance Sheet
Assets		Liabilities and equity
Current assets	$	Short-term debt	$
		Long-term debt
Fixed assets
		Common stock	$
		Accumulated retained earnings
		Total equity
Total assets	$	Total liabilities and equity	$

b-2.

Calculate the external financing needed.

c.	Calculate the sustainable growth rate for the company based on the current financial statements.