5. Using percentage of sales based proforma method, construct new Income statement, Balance sheet for year 2019, and find out the AFN amount. Assume sales increase by 20% in 2019. Currently, a firm utilizes 80% of capacity of fixed asset usage for sales. Assume Interest expense and depreciation will be the same amount as 2018. (Hint: capacity sales = So% of capacity). Also, a firm use the same dividend payout ratio as 2018. INCOME STATEMENTS (MILLIONS OF DOLLARS) 2018 2019 Sales $3,600.0 Operating costs 3.060.0 EBITDA $ 540.0 Depreciation and amortization 90.0 90 Earnings before interest and taxes $ 450.0 Interest 65.0 65.0 Earnings before taxes $ 385.0 Taxes (40%) 154.0 Net income available to common stockholders S 231.0 Common dividends $ 181.5 What is the amount of additional Retained earnings for year 2019? 4 pts Cash and marketable securities BALANCE SHEETS (MILLIONS OF DOLLARS) 2018 2019 $36.0 $ 43.2 540.0 Accounts receivable 540.0 Inventories Total current assets Net plant and equipment Total assets $1,116.0 900.0 $2,016,0 $ 324.0 216.0 201.0 Liabilities and equity: Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total debt Common stock (50 million shares) Retained earnings Total common equity Total liabilities and equity $ 741.0 450.0 $1,191.0 150.0 675.0 $ 825.0 $2.0160 ========= 6. AFN= 5 pts Capacity sales =