Using the financial statements for 2009 as your "base", assume that Luxo's sales are 20% higher for 2010. Use this projection to prepare the pro forma statements following the requirements listed below. Assume the in sales is permanent. change 1. For the Income Statement: Cost of Goods Sold rate is expected to remain constant; "Depreciation' and 'Interest paid' expenses are expected not to change; The Tax rate is expected to decrease to 32%; and Management is expected to increase the amount of dividends paid by 5% (therefore, the Dividend payout rate will increase by 5%). 2. For the Balance Sheet: "Current assets, change in direct proportion to sales; Fixed assets, are being operated at 100% of capacity; "Accounts payable, changes in direct proportion to sales; Notes payable' and 'Other' current liabilities do not change; "Common stock, remains unchanged; and Use 'Long-term debt' as the plug variable. - Determine the amount of External Financing Needed (EFN) under the pro forma assumptions. Detail how this external financing is distributed. 3