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The Optical Scam Company has forecast a sales growth of 25percent for next year. The current financial statements are shownhere:

  

Income Statement
  Sales			$	32,100,000
  Costs				26,512,400
  Taxable income			$	5,587,600
  Taxes				1,955,660
  Net income			$	3,631,940
  Dividends	$	1,452,776
  Addition to retained earnings		2,179,164

  

Balance Sheet
Assets		Liabilities and Owners' Equity
  Current assets	$	7,370,000		  Short-term debt	$	7,383,000
				  Long-term debt		5,162,750
  Fixed assets		18,952,000
				  Common stock	$	1,707,250
				  Accumulated retained earnings		12,069,000
				  Total equity	$	13,776,250
  Total assets	$	26,322,000		  Total liabilities and equity	$	26,322,000

  

a.	Using the equation from the chapter, calculate the externalfinancing needed for next year. (Do not round intermediatecalculations and round your answer to the nearest whole dollaramount, e.g., 32.)

     
    

b-1.	Construct the firm’s pro forma balance sheet for next year.(Do not round intermediate calculations and round youranswers to the nearest whole dollar amount, e.g., 32.)

      

b-2.	Calculate external financing needed. (Do not roundintermediate calculations and round your answer to the nearestwhole dollar amount, e.g., 32.)

  
      

c.	Calculate the sustainable growth rate for the company based onthe current financial statements. (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)