Upton Computers makes bulk purchases of small computers, stocksthem in conveniently located warehouses, ships them to its chain ofretail stores, and has a staff to advise customers and help themset up their new computers. Upton's balance sheet as of December31, 2018, is shown here (millions of dollars): Cash $ 3.5 Accountspayable $ 9.0 Receivables 26.0 Notes payable 18.0 Inventories 58.0Line of credit 0 Total current assets $ 87.5 Accruals 8.5 Net fixedassets 35.0 Total current liabilities $ 35.5 Mortgage loan 6.0Common stock 15.0 Retained earnings 66.0 Total assets $122.5 Totalliabilities and equity $122.5 Sales for 2018 were $300 million andnet income for the year was $9 million, so the firm's profit marginwas 3.0%. Upton paid dividends of $3.6 million to commonstockholders, so its payout ratio was 40%. Its tax rate was 40%,and it operated at full capacity. Assume that all assets/salesratios, (spontaneous liabilities)/sales ratios, the profit margin,and the payout ratio remain constant in 2019. Do not roundintermediate calculations.

If sales are projected to increase by $40 million, or13.333333%, during 2019, use the AFN equation to determine Upton'sprojected external capital requirements. Enter your answers inmillions. For example, an answer of $10,550,000 should be enteredas 10.55. Round your answer to two decimal places. $ million

Using the AFN equation, determine Upton's self-supporting growthrate. That is, what is the maximum growth rate the firm can achievewithout having to employ nonspontaneous external funds? Round youranswer to two decimal places. %

Use the forecasted financial statement method to forecastUpton's balance sheet for December 31, 2019. Assume that alladditional external capital is raised as a line of credit at theend of the year and is reflected (because the debt is added at theend of the year, there will be no additional interest expense dueto the new debt). Assume Upton's profit margin and dividend payoutratio will be the same in 2019 as they were in 2018. What is theamount of the line of credit reported on the 2019 forecastedbalance sheets? (Hint: You don't need to forecast the incomestatements because the line of credit is taken out on last day ofthe year and you are given the projected sales, profit margin, anddividend payout ratio; these figures allow you to calculate the2019 addition to retained earnings for the balance sheet withoutactually constructing a full income statement.) Round your answersto two decimal places.

Upton Computers Pro Forma Balance Sheet December 31, 2019 (Millions of Dollars)
Cash	$
Receivables	$
Inventories	$
Total current assets	$
Net fixed assets	$
Total assets	$
Accounts payable	$
Notes payable	$
Line of credit	$
Accruals	$
Total current liabilities	$
Mortgage loan	$
Common stock	$
Retained earnings	$
Total liabilities and equity	$