Financial Planning Case: Al Ain Material Supplies has the following financial statements, which are representative of AMS is expecting a 20 percent increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing stores. Only current liabilities vary directly with sales. Questions: 1. Using the percent-of-sales method, determine whether AMS has external financing needs. 2. What would be the impact of paying only 30% cash dividends? R=11030t7% 3. Indicate the effect of not paying tax and not paying dividends on the financial needs. 10%3