Harvard Prep Shops, a national clothing chain, had sales of $300 million last year. The business has a steady net profit margin of 15 percent and a dividend payout ratio of 20 percent. The balance sheet for the end of last year is shown below Assets Cash Account receivable Inventory Balance Sheet December 31, 20xx ($ millions) Liabilities and Shareholders' Equity $7 Accounts payable 28 Accrued expenses 64 Other payables Common stock 135 Retained earnings 5234 Total liabilities and equity $40 11 15 95 73 plant and equipment $234 Total assets Harvard's anticipates a large increase in the demand for tweed sport coats and deck shoes A sales increase of 20 percent is forecast 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 in the number of common shares outstanding is scheduled and retained earnings will change as dictated by the profits and dividend policy of the firm a. Will external financing be requred for the Prep Shop during the coming year? Yes NO