1 Summit, Inc. just completed its best year ever. Sales for 2012 were $5.5 million. Its year end balance sheet is shown below: Current Assets Net Fixed Assets BALANCE SHEET 2012 $1,000,000 Current Liabilities 2,000,000 Long-term Debt Owners' Equity $3,000,000 $500,000 1,500,000 1,000,000 $3,000,000 Total INCOME STATEMENT 2004 Sales $5,500,000 Cost of Goods Sold 3,500,000 Gross Profit 2,000,000 Operating Expenses 1,000,000 Interest 170,000 Taxes 350,200 Net Profit $479,800 Dividends $400,000 Summit's financial manager would like to forecast the dollar amount of external financing the firm will need in 2013. The financial manager assumes that sales will increase 30% and that since the firm is operating at capacity, total assets will stay in the same proportion to sales in 2013 as in 2012. In addition, all current liabilities are assumed to be spontaneous. a. Forecast the dollar amount of external funds needed in 2013. b. How might the firm reduce its reliance on external funds