The Optical Scam Company has forecast an 20 percent sales growth rate for next year. The current financial statements are shown below. Current assets, fixed assets, and short-term debt are proportional to sales.

INCOME STATEMENT

Sales			$	35,000,000
Costs				27,100,000
Taxable income			$	7,900,000
Taxes				2,765,000
Net income			$	5,135,000
Dividends	$	1,027,000
Additions to retained earnings	$	4,108,000

BALANCE SHEET
Assets			Liabilities and Equity
Current assets	$	9,800,000	Short-term debt	$	5,600,000
			Long-term debt		6,100,000
Fixed assets		28,000,000
			Common stock	$	2,800,000
			Accumulated retained earnings		23,300,000
			Total equity	$	26,100,000
Total assets	$	37,800,000	Total liabilities and equity	$	37,800,000

Required:

a.	Using the equation from the chapter, calculate the external funds needed for next year. (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount. (e.g., 1,234,567))

External funds needed

$

c.	Calculate the sustainable growth rate for the company. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Sustainable growth rate

%

d.	Suppose Optical Scam eliminates its dividend entirely. What is the new EFN?

External funds needed

$