$(5\%+5\%+5\%+5\%)$ If the Hoffman Company anticipates a $12\%$ growth in the upcoming

year, what are the required assets, addition to retained earnings, external financing

needed, and Debt$-$Equity Ratio $($assumed no debt policy$)?$ Below are the income

statement and balance sheet for the Hoffman Company. Consider the company's

practice of distributing a consistent fraction of net income as a cash dividend, and the

assumption that costs remain a constant percentage of sales.

Income Statement

Sales

Costs

Taxable income

Taxes $(21\%)$

Net income

Dividends

Addition to retained earnings

$$500\mathrm{.}0$

$416\mathrm{.}5$

$$83\mathrm{.}5$

$17\mathrm{.}5$

$$66\mathrm{.}0$

$$22$

$44$

Balance Sheet