Consider the following details about a firm at the end of the current year. Sales =$10M Net Income =$2.5M Current Assets =$2M Fixed Assets =$8M Current Liabilities =$1.5M Long-term Debt =$2.5M Dividends =$1M Retained Earnings =$1.5M If the next year's sales are projected to be $12.5M, what is the amount of external financing needed, assuming the firm is operating at full capacity, and profit margin and payout ratio remain constant? No external financing is needed. $250,000 $562,500 $875,000