Honest Joe has plants in five provinces and operates a very large home delivery service Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity Assets Cash Accounts receivable Inventory Current assets Capital Assets Balance Sheet (in s millions Liabilities and shareholders' Equity $7 Accounts payable $8 12 Accrued wages 6 20 Accrued taxes 4 $39 Current liabilities $18 39 Long-term debt 10 Common stock 15 Retained earnings 35 Total liabilities and shareholder's $78 $78 equity Total assets The firm has an aftertax profit margin of 4 percent and a dividend payout ratio of 35 percent. a. If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the expansion (Enter the answer in millions. Round the final answer to 3 decimal places.) b. Prepare a pro forma balance sheet with any financing adjustment made to long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Enter the answers in millions. Round the final answers to 3 decimal places.) Assets Current assets Click to select) (Click to select) Click to select Balance Sheet (5 millions) Liabilities and shareholdera quity Current liabilities (Click to select) (Click to select (Click to select) . : . . Current asseta mini ni (Click to select) Current liabilities (Click to select) (Click to select) (Click to select) . Total aseta Total liabilities and shareholders' equity c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Year 1 Year 2 x Current ratio Total debt / assets