Use the following information for Martin$-$Jones Company to answer question $1$: $(20$ marks total$)$

Year

$20$X$1$

$20$X$2$

Net sales

$$1,200,000$

$$1,335,481$

Cost of goods sold

$540,000$

$600,966$

Depreciation

$180,000$

$200,322$

Interest paid

$43,120$

$42,960$

Cash

$102,000$

$113,516$

Accounts receivable

$360,000$

$400,644$

Inventory

$360,000$

$400,644$

Net fixed assets

$1,440,000$

$1,602,577$

Accounts payable

$300,000$

$333,870$

Notes payable

$39,000$

$37,000$

Long$-$term debt

$500,000$

$500,000$

Common stock

$1,000,000$

$1,000,000$

Retained earnings

$423,000$

$646,511$

Tax rate

$30\%$

$30\%$

Dividend payout

$35\%$

$35\%$

Martin$-$Jones has $500,000$ common shares outstanding. The firm is projecting a $20\%$ increase in net sales for the coming year $(20$X$3).$ Martin$-$Jones uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, depreciation, all assets $($current and fixed$),$ and accounts payable will all remain a constant percentage of sales. The firm will aim to maintain its dividend payout of $35\%$ for the foreseeable future. The interest rate charged on notes payable and long$-$term debt is also expected to remain the same in$.$

a$.$ Construct the pro$-$forma statement of comprehensive income and statement of financial position for Martin$-$Jones Company for $20$X$3.$ Calculate the external financing needed $($EFN$)$ for $20$X$3.$ Round all your numbers in the pro$-$forma statements to the nearest dollar. $(4$ marks$)$

b$.$ Based on its $20$X$2$ information, what is Martin$-$Jones$$s capital intensity ratio? $(1$ mark$)$

c$.$ What is Martin$-$Jones$$s full capacity sales if it is currently operating at $70\%$ capacity $(20$X$2)?(1$ mark$)$

d$.$ How will the external financing needed $($EFN$)$ for $20$X$3$ be affected if Martin$-$Jones is only operating at $70\%$ capacity? Interpret this EFN number, and explain what the firm can do with it$.(5$ marks$)$

e$.$ What is Martin$-$Jones$$s internal growth rate for $20$X$2?$ Round your final answer in percentage to two decimal places. $(2$ marks$)$

f$.$ What is Martin$-$Jones$$s sustainable growth rate for $20$X$2?$ Round your final answer in percentage to two decimal places. $(2$ marks$)$

g$.$ Assume that Martin$-$Jones is operating at $100\%$ capacity. Calculate the EFN for the firm if it wants to grow its sales by $100\%$ for $20$X$3.$ In a few sentences $($maximum of $5),$ discuss what you think this EFN number means for the company and its growth plan. $(5$ marks$)$