*****Please show the work on a clear excel spreadsheet. The answer posted previously on chegg is not clear. It's difficult to understand.

Company A has forecast a sales growth rate of 20% for next year. The current financial statements are in attached Excel file (Q1). a. Calculate the external funds needed for next year. b. Construct a pro-forma balance sheet for next year and confirm the external funds needed (that you calculated in a). c. Can the company eliminate the need for external funds by changing its dividend policy, for example not paying out dividends? Should company do so?

Growth rate	20%
Sales	$ 22,000,000
Costs	18,000,000
Taxable income	$ 4,000,000
Taxes	602,500
Net income	$ 3,397,500
Dividends	$ 500,000
Addition to retained earnings	2,897,500
Current assets	$ 7,000,000		Short-term debt	$ 5,000,000
Fixed assets	17,000,000		Long-term debt	6,000,000
			Common stock	$ 4,000,000
			Accumulated retained earnings	9,000,000
			Total equity	$ 13,000,000
Total assets	$ 24,000,000		Total L&E	$ 24,000,000