1. Shown below is Jensen Companys projected income statement for year 2017, and the balance sheet as of the end of 2016.

Pro Forma Income Statement	2017		Balance Sheet	Dec. 31, 2016	Dec. 31 2017
Revenues	7,000,000		Cash	30,000
Depreciation	500,000		Inventory	270,000
Other Expenses	5,800,000		Fixed Assets (Net)	4,700,000
Income	700,000		Total Assets	5,000,000
Dividends	500,000		Payables	180,000
			LT. Debt	1,820,000
			Equity	3,000,000
			Liabilities + Equity	5,000,000

Sales are expected to increase from $5 million in 2016 to $7 million in 2017, and net income is expected to increase from $500,000 in 2016 to $700,000 in 2017. To accommodate this sales growth Jensen will have to invest $3 million in a new warehouse and computerized distribution system. Working capital accounts, including cash, inventory, and payables, will grow at the same rate as sales. For simplicity, ignore interest on debt.

Compute Jensens Internal Growth Rate. Will Jensen need external capital during 2017?

What, specifically, is the amount of External Funds Needed (EFN) as of the end of year 2017?