With sales of $450,000, MJM, Inc. is operating at capacity but management anticipates that sales will grow 25 percent during the coming year. The company earns 8 percent on sales and distributes 40 percent of earnings to stockholders. Its current balance sheet is as follows: MJM, Incorporated Balance Sheet as of 12/31/XO Assets Liabilities and Equity Cash $ 8,500 Accounts payable Accounts receivable 22,000 Accruals Inventory 75,000 Notes payable Current assets 105,500 Current liabilities Plant and equipment 100,000 Common stock Retained earnings Total assets $205,500 Total liabilities and equity $ 42,000 39,000 0 81,000 80,000 44,500 $205,500 a. In addition to cash, which assets and liabilities will increase with the increase in sales and by how much if the percent of sales is used to forecast the increases? If assets or liabilities does not change enter zero as a forecasted change. Do not round intermediate calculations. Round your answers to the nearest dollar. Change Increase Forecasted change $ $ $ Increase Increase C Assets and Liabilities Cash Accounts receivable Inventory Plant and equipment Accounts payable Accruals Notes payable $ $ No change Increase $ Increasa C. $ $ Increase b. How much external finance will the firm need? Round your answer to the nearest dollar. $ C. If cash did not increase but could be maintained at $8,500, what impact would the lower cash have on the firm's need for external finance? Round your answer to the nearest dollar. Enter your answer as a positive value. -Select- If cash remained at $8,500 the need for external funds would be $ by $ d. If the firm distributed 20 percent (2) instead of 40 percent (1) of its earnings, would it need external finance? The net increase in retained earnings comparing (2) with (1) is $ . It -Select- cover the external funds needed. e. Construct a new balance sheet assuming that cash increases with the increase in sales and the firm distributes 40 percent of its earnings to stockholders. If the firm needs external finance, acquire the funds by issuing a short-term note to a commercial bank. Do not round intermediate calculations. Round your answers to the nearest dollar s MJM, Incorporated Balance Sheet as of 12/31/X1 Assets Liabilities and Equity Cash $ Accounts payable Accounts receivable Accruals Inventory Notes payable Current assets Current liabilities Plant and equipment Common stock Retained earnings Total assets $ Total liabilities and equity $ ..5