Following are two years of income statements and balance sheets for the Munich Exports Corporation.

A. Munich has a target dividend payout of 40 percent of net income. Based on the 2010 financial statements relationships, estimate the sustainable sales growth rate for the Munich Corporation for 2011.
B. Show how your answer in Part A would change if Munich decided not to pay any dividends in 2011.
C. Assume the Munich Corporation wants to grow its sales by 40 percent in 2011 over its 2010 level. Estimate the additional funds needed that will be necessary to support this rapid increase in sales.
D. Sales are forecasted to increase an additional 20 percent in 2012 over 2011. Estimate the two-year AFN that the Munich Corporation will need to finance its 2011 and 2012 sales growthplans.

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MUNICH EXPORTS CORPORATION 2009 2010 50,000 50,000 300,000 570,000 920,000 380,000 000000 1,300,000 Cash Accounts recevable Inventories 200,000 450,000 700,000 300,000 Total current assets Fixed assets, net Total asset:s Accounts payable Accruals Bank loan 130,000 $1 Total current liabilities Long-term debt Common stock (0.05 par) Additional paid-in-capital Retained earnings 50,000 90,000 270,000 400,000 50,000 200,000 80,000 $1,000,000 S 180,000 70,000 90,000 340,000 550,000 50,000 200,000 160,000 Total liabilities and equity $1,300,0 2009 $1,300,000 780,000 520,000 130,000 150,000 40,000 2010 $1,600,000 960,000 640,000 160,000 150,000 55,000 Net sales Cost of goods sold Gross profit Marketing General and administrative Depreciation EBIT Eamings before taxes Net income $200,000 45,000 155,000 62,000 S 93,000 S 37,000 $275,000 55,000 220,000 88,000 $132,000 52,000 Interest income taxes (40% rate) Cash dividends