Tools Forecasted Statements and Ratios Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up the new computers Upton's balance sheet as of December 31, 2021, is shown here (millions of dollars) Cash Receivables Inventories Total current assets Net fixed assets $ 3.5 Accounts payable $9.0 26.0 Notes payable 180 58.0 Line of creat 0. 1875 Accruals 85 35.0 Total current bites 135.5 6.0 15.0 66.0 $122.5 Tital assets Common stock Retained earnings $122.5 Total labies and equity Sales for 2021 were $300 million, and net income for the year was $9 milion, so the firm's profit margin was 3.0%, Upton paid dividends of $3.6 million to common stockholders, so its payout ratio was 40% rate was 25%, and rated at full capacity, Assume that all assets/sales ratios, (spontaneous abilities/sales ratios, the profit margin, and the payout ratio remain constant in 2022. Do not round intermediate calculat If sales are projected to increase by $48 million, or 16% during 2022, use the AFN equation to determine Upton's projected external captal requirements. Enter your answer in mitions for example, anawe of $10,550,000 should be entered as 10.55. Round your answer to two decimal places h. Using the AFN equation, determine Upton's self-porting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external hunds) und your c. Use the forecasted financial statement method to forecast Upton's belance sheet for December 31, 2022. Assume that all additional external capital is raised as a line of credit at the end of the year (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt) Assume Upton's profit margin and dividend payout ratio will be the same in 2022 as they were in 2021 What is the amount of the line of credit reported on the 2002 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratie; these figures allow you to calculate the 2022 addition to retained earnings for the balance sheet without actually constructing a fu income statement.) Enter your answers in mitons. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places c. Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2022. Assume that all additional external capital is raised as a line of credit at the end of the year (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Upton's profit margin and dividend payout ratio will be the same in 2022 as they were in 2021. What is the amount of the line of credit reported on the 2022 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2022 addition to retained earnings for the balance sheet without actually constructing a full income statement.) Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places Cash Receivables Inventories Upton Computers Pro Forma Balance Sheet December 31, 2022 (Millions of Dollars) Total current assets Net fixed assets Total assets $ Accounts payable $ " Line of credit $ Accruals $ Total current liabilities Mortgage loan Common stock Retained earnings Total liabilities and equity Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2021, is shown here (millions of dollars): Cash Receivables Inventories $ 3.5 Accounts payable 26.0 Notes payable $ 9.0 18.0 58.0 Line of credit 0 Total current assets Net fixed assets $87.5 Accruals 8.5 35.0 Total current Babilities. $35.5 Mortgage loan 6.0 Common stock 15.0 66.0 Total assets $122.5 $122.5 Retained earnings Total liabilities and equity Sales for 2021 were $300 million, and net income for the year was $9 million, so the firm's profit margin was 3.0%. Upton paid dividends of $3.6 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2022. Do not round intermediate calculations. a. If sales are projected to increase by $48 million, or 16%, during 2022, use the AFN equation to determine Upton's projected external capital requirements. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places. $ million b. Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places. c. Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2022. Assume that all additional external capital is raised as a to the new dehracome A- c. Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2022. Assume that all additional external capital is raised as a line of credit at the end of the year. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Upton's profit margin and dividend payout ratio will be the same in 2022 as they were in 2021. What is the amount of the line of credit reported on the 2022 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2022 addition to retained earnings for the balance sheet without actually constructing a full income statement.) Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places. Upton Computers Pro Forma Balance Sheet December 31, 2022 (Millions of Dollars) Cash $ Receivables $ Inventories $ Total current assets $ Net fixed assets $ Total assets $ Accounts payable $ Notes payable $ Line of credit $ Accruals $ Total current liabilities $ Mortgage loan $ Common stock $ Retained earnings S Total liabilities and equity S