Conn Man's Shops, a national clothing chain, had sales of $390 million last year. The business has a steady net profit margin of 8 percent and a dividend payout ratio of 35 percent. The balance sheet for the end of last year is shown Assets Cash Accounts receivable Inventory plant and equipment Balance sheet ind of Year cillions Liabilities and stockholders Equity Accounts payable 34 Accrued expenses ne Other payables 198 Common stock Retained warnings 5351 Total 1Lobilities and stockholders equity 551 13 68 70 112 $ 351 Total assets The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 10 percent is forecast for the company All balance sheet items are expected to maintain the same percent of sales relationships as last year except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding and retained earnings will change as dictated by the profits and dividend policy of the firm (Remember the net profit margin is 8 percent) The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 10 percent is forecast for the company. All balance sheet items are expected to maintain the same percent of sales relationships as last year, except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding, and retained earnings will change as dictated by the profits and dividend policy of the firm (Remember the net profit margin is 8 percent) *This includes fixed assets, since the firm is at full capacity a. Will external financing be required for the company during the coming year? No Yes b. What would be the need for external financing if the net profit margin went up to 9.50 percent and the dividend payout ratio was Increased to 60 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g.. $1,234,567).) Required new funds Problem 4-29 Percent-of-sales method (L04-3) Conn Man's Shops, a national clothing chain, had sales of $390 million last year. The business has a steady net profit margin of 8 percent and a dividend payout ratio of 35 percent. The balance sheet for the end of last year is shown 551 A C Accounts receivable Inventory Plant and equipe Balance Sheet End of Year Cillions) Latities and stocholders' Equity 139 counts payable Accu expenses Other payables 9. Con stock! Rotananing $351 Total Ibilities and stockholders' equity 63 78 317 $ 351 Total at The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 10 percentis forecast for the company All balance sheet items are expected to maintain the same percent of sales relationships as last year, except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding and retained earings will change as dictated by the profits and dividend policy of the firm (Remember the net profit margin is 8 percent) The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 10 percent is forecast for the company. All balance sheet items are expected to maintain the same percent-of-sales relationships as last year, except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding, and retained earnings will change as dictated by the profits and dividend policy of the firm (Remember, the net profit margin is 8 percent) *This includes fixed assets, since the firm is at full capacity a. Will external financing be required for the company during the coming year? No Yes b. What would be the need for external financing if the net profit margin went up to 9.50 percent and the dividend payout ratio was increased to 60 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.... 51,234,567).) Required new funds