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The Optical Scam Company has forecast a sales growth rate of 20 percent for next year. Current assets, fixed assets, and short-term debt are proportional to sales. The current financial statements are shown here:

INCOME STATEMENT
Sales			$	31,700,000
Costs				26,426,900
Taxable income			$	5,273,100
Taxes				1,845,585
Net income			$	3,427,515
Dividends	$	1,371,006
Addition to retained earnings		2,056,509

BALANCE SHEET
Assets				Liabilities and Equity
Current assets	$	7,330,000		Short-term debt	$	5,389,000
				Long-term debt		7,291,000
Fixed assets		20,566,000
				Common stock	$	959,000
				Accumulated retained earnings		14,257,000
				Total equity	$	15,216,000
Total assets	$	27,896,000		Total liabilities and equity	$	27,896,000

a. Calculate the external funds needed for next year using the equation from the chapter. (Do not round intermediate calculations.) External financing needed $ b-1. Prepare the firms pro forma balance sheet for next year. (Do not round intermediate calculations.)

BALANCE SHEET
Assets				Liabilities and equity
Current assets	$			Short-term debt	$
Fixed assets				Long-term debt
				Common stock	$
				Accumulated retained earnings
				Total equity	$
Total assets	$			Total liabilities and equity	$

b-2. Calculate the external funds needed. (Do not round intermediate calculations.) External financing needed $ c. Calculate the sustainable growth rate for the company based on the current financial statements. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %

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