Consider the balance sheet of a firm below:

Balance Sheet

(in $ millions)

Assets Liabilities and Stockholders' Equity

Cash ...................................... $ 7 Accounts payable ............$20

Accounts receivable ............ 25 Accrued wages .................7

Inventory .............................. 28 Accrued taxes .................. 13

Current assets ................... $80 Current liabilities .......... $40

Fixed assets ......................... 25 Notes payable ..................15

Common stock .................20

Retained earnings ............ 30

Total Assets ...........................$105 Total liabilities and stockholders equity .......$105

If the firms sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firms after-tax profit margin is 10% and dividend payout ratio is 45%.

(a) The amount of the expected profit next year will be $__________ million if sales will grow by 20% per year.

(b) Assuming the firm is operating at full capacity, the new funds needed to finance the sales will be $__________ million if sales will grow by 20% next year.

(c) The new funds needed to finance the sales will be $__________ million if sales will grow by 20% next year and the firm is notoperating at full capacity.