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(3) 1. Assume this firm is operating at full capacity. Use the following Income statement, Balance sheet, the tax rate, and dividend payout ratio to find the Retained Earnings and the additional financing needed to support the new 2020 sales. Assume that the firm can issue more debt or equity (or both). Show all work. Income Statement 2019 2020 Sales 1000 tax rate 0.3 Costs dividend payout ratio 0.25 Profit Before tax Tax Net Income na na 700 na na na Dividends na What are the retatined earnings? Balance Sheet 2020 2019 100 900 Current Assets Net Fixed Assets 2020 115 1080 81 Current Liabilities Long-term Debt Common Stock Retained Earnings 2019 70 400 300 230 total assets 1000 Liabilities and Net worth 1000 What is the additional financing needed? (3) 1. Assume this firm is operating at full capacity. Use the following Income statement, Balance sheet, the tax rate, and dividend payout ratio to find the Retained Earnings and the additional financing needed to support the new 2020 sales. Assume that the firm can issue more debt or equity (or both). Show all work. Income Statement 2019 2020 Sales 1000 tax rate 0.3 Costs dividend payout ratio 0.25 Profit Before tax Tax Net Income na na 700 na na na Dividends na What are the retatined earnings? Balance Sheet 2020 2019 100 900 Current Assets Net Fixed Assets 2020 115 1080 81 Current Liabilities Long-term Debt Common Stock Retained Earnings 2019 70 400 300 230 total assets 1000 Liabilities and Net worth 1000 What is the additional financing needed

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