$*$Please place commas in the appropriate places for your numbers when writing down your answer.

The Optical Scam Company has forecast a sales growth of $20\%$ for next year. The current financial statements are shown below. Costs, current assets, fixed assets, and short$-$term debt are proportional to sales.

Income statement

Sales $$35,500,000$

Costs $$22,700,000$

Taxable income $$12,800,000$

Taxes $$2,688,000$

Net income $$10,112,000$

Dividends $$1,785,000$

Addition to retained earnings $$8,327,000$

Balance Sheet

Assets Liabilities and Equity

Current assets $$10,088,000$ short$-$term debt $$5,982,000$

fixed assets $$29,645,000$ long$-$term debt $$6,908,000$

Common Stock $$2,676,000$

Accumulated retained earnings $$24,167,000$

Total equity $$26,843,000$

total assets $$39,733,000$ Total liabilities and equity $$39,733,000$

QUESTION #$1.$ Using the equation learned from Chapter $3,$ what is the External Financing Needed $($EFN$)$ for next year?

ANSWER : $

Incorrect answer:

$-3,244,176$

QUESTION #$2.$ Please fill in the PRO$-$FORMA balance sheet and income statement for next year.

PRO$-$FORMA INCOME STATEMENT

Sales $

Incorrect answer:

$35,500,000$

Costs $

Incorrect answer:

$22,700,000$

Taxable income $

Incorrect answer:

$12,800,000$

Taxes $

Incorrect answer:

$10,112,000$

Net income $

Incorrect answer:

$12,134,397$

Dividends $

Incorrect answer:

$2,184,191$

Addition to retained earnings $

Incorrect answer:

$9,950,206$

PRO FORMA BALANCE SHEET $($note: both sides of total will not match yet$)$

Assets Liabilities and Equity

Current assets $

Incorrect answer:

$12,105,000$

short$-$term debt $

Incorrect answer:

$5,982,000$

fixed assets $

Incorrect answer:

$3,557,400$

long$-$term debt $

Correct answer:

$6,908,000$

Common Stock $

Correct answer:

$2,676,000$

Accumulated retained earnings $

Incorrect answer:

$34117206$

Total equity $

Incorrect answer:

$36,793,206$

total assets $

Incorrect answer:

$15,662,400$

Total liabilities and equity $

Incorrect answer:

$49,683,206$

QUESTION #$3.$ From the balance sheet, what is the amount of your External financing needed $($EFN$)?$

ANSWER : $

Incorrect answer:

$-34,020,806$

QUESTION #$4.$ Does your EFN match from Question #$3$ to Question #$1$ answer?

ANSWER:

Incorrect answer:

No

QUESTION #$5.$ What is the sustainable growth rate for this company?

ANSWER: approximately

Incorrect answer:

$36\%$