Tut I wil ma n growth rate it can sustain without requiring additional funds? 6. IGN Ltd is thinking of purchasing a new machine. With this new machine, the company expects sales to increase from Tshs 8,000,000 to Tshs 10,000,000. The company knows that its assets, accounts payable and accrued expenses vary directly with sales. The company's profit margin on sales is 8 percent, and the company plans to pay 40 percent of its after-tax earnings in dividends, The Company's current balance sheet is given below. Balance Sheet Tshs Current assets 3,000,000 Fixed assets 12,000,000 Total assets 15,000,000 Accounts payable 4,000,000 Accrued expenses 1,000,000 Long-term debt 3,000,000 Common stock 2,000,000 Retained earnings 5,000,000 Total liabilities and net worth 15,000,000 Use the formula to determine the external funds needed 125 b. Prepare a pro forma balance sheet and use it to determine the amount of external funds needed. c. Determine, using the formula, the external funds needed under each of the following conditions: i. The profit margin rises from 8 percent to 10 percent. ii. The profit margin is 8 percent, but the dividend payout ratio is reduced from 40% to 20% d. Comment on the results from part (c)