Comparative income statements and balance sheet for AlRayan Company are shown below (in millions)

	Year 2	Year 1
Income statement
Net sales	$22,989	$18,741
Cost of goods	18,400	15,152
Gross profit	4,589	3,589
Selling, general, and administrative expense	3,377	2,592
Depreciation and amortization expense	250	155
Income before tax	962	842
Income tax expense	385	337
Net income	577	505
Outstanding shares	312	300
Balance Sheet
Cash	$1,119	$1,126
Receivables	470	393
Inventories	2,650	1,776
Other current assets	153	62
Total current assets	4,392	3,357
Property, plant, and equipment	2,980	1,640
Accumulated depreciation	815	592
Net property, plant & equipment	2,165	1,048
Other noncurrent assets	699	88
Total assets	$7,256	$4,493
Accounts payable and accrued liabilities	$3,710	$2,556
Short-term and current maturities of long-term debt	171	24
Income tax liabilities	190	98
Total current liabilities	4,071	2,678
Long-term liabilities	183	150
Long-term debt	289	22
Total long-term liabilities	472	172
Common stock	30	30
Capital surplus	864	371
Retained earnings	1,819	1,242
Shareholders equity	2,713	1,642
Total liabilities and equity	$7,256	$4,493

REQUIRED:

1. Prepare a projected income statement, balance sheet, and statement of cash flows for Year 3.
2. Based on you projections for Year 3, how much external financing will AlRayan Company need to fund its growth at projected increases in sales?