Problem 10 (10 points) Please refer to Oscar's financial statements below. What is the external financing need for next year until end of 2021? Make the following assumptions: 1) Sales are projected to increase by 10% in 2021 2) Depreciation and interest vary with sales and thus you will have a constant net profit margin) 3) A zero dividend payout ratio in 2021 4) all of Oscar's assets and current liabilities vary directly with sales 5) long-term debt and common stock remain unchanged. Your 2021 Projections Income Statement Total Revenue Cost of Goods Sold Depreciation Earnings Before Interest and Taxes (EBIT) Interest Expense Taxable income Tax Expense Net Income (Loss) Dividends Paid Year ended 12/31/2020 17,300 10,600 3,250 3,450 680 2,770 940 1,830 450 Year ended 12/31/2020 1,350 940 2,360 4,650 9,850 14,500 Balance Sheet Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Net Fixed Assets Total assets Liabilities and stockholders' equity Current liabilities: Accounts payable Total current liabilities Long Term Debt Total liabilities Stockholders' equity: Common stock & Paid-in Capital Retained Earnings Total stockholders' equity Total liabilities and equity 1,920 1,920 3,500 5,420 6,500 2,580 9,080 14,500 Write answer for EFN Here:* For this problem, you may print out this sheet as part of your answer if you wish. However, your answers must still be handwritten