2. (a) Assuming no change in its receivables or payables policies and no div- idends are paid, use the percent-of-sales method to estimate SP's exter- nal financing requirements, EFR, for year : + 1. Use EFR = N(AS) - bmS,+1 where N = A/S - L/S and L refer to spontaneous liabilities. AS = change in annual sales b = retained earnings ratio m1 = net profit margin = NI/Sales S,41 = sales in year f + 1 (b) Estimate the maximum yearly sales growth, g, that SP can internally fi- nance. Continue to assume no change in its receivables or payables poli- cies and no dividends are paid. Use mb N - mb (c) If Stanley chooses to limit growth to the amount that can be internally financed, predict SP's annual sales over the next three years