Harvard Prep Shops, a national clothing chain, had sales of $300 million last year. The business has a steady net profit margin of 25 percent and a dividend payout ratio of 40 percent. The balance sheet for the end of last year is shown below Balance Sheet December 11, 20xx (5 millions) Assets Liabilities and Shareholders' Equity Cash 54 Accounts payable $1% Account receivable 22 Accrued expenses 11 Inventory 68 Other payables 23 Connon stock 35 Plant and equipment 155 Retained earrings 163 Total assets $249 Total liabilities and equity $249 Harvard's anticipates a large increase in the demand for tweed sport coats and deck shoes. A sales increase of 25 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 required for the Prep Shop during the coming year? Yes