Harvard Prep Shops, a national clothing chain, had sales of $350 million last year. The business has a steady net profit margin of 20 percent and a dividend payout ratio of 40 percent. The balance sheet for the end of last year is shown below: Balance Sheet December 31, 20XX ($ millions) Assets Liabilities and Shareholders' Equity Cash $10 Accounts payable $45 Account receivable Inventory 22 Accrued expenses 14 71 Other payables 18 Common stock 50 Plant and equipment 170 Retained earnings 146 Total assets $273 Total liabilities and equity $273 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 required for the Prep Shop during the coming year? Yes O No b. What would the need for external financing be if the net profit margin went up to 25 percent and the dividend payout ratio was Increased to 75 percent? (Enter the answer in millions. Round the final answer to 2 decimal places.) Required new funds $ million The Harmon Corporation manufactures bats with Larry Walker's autograph stamped on them. Each bat sells for $41 and has a variable cost of $22. There is $34,000 in fixed costs involved in the production process. a. Compute the break-even point in units. (Round the final answer to the nearest whole number.) Break-even point bats b. Find the sales (in units) needed to earn a profit of $16,350. (Round the final answer to the nearest whole number.) Sales bats Eli Lilly is very excited because sales for his nursery and plant company are expected to Increase from $610,000 to $1,290,000 next year. Ell's net assets (assets - liabilities) will remain at 50 percent of sales. His firm will enjoy an 6 percent return on total sales. He will begin the year with $140,000 in the bank and is already bragging about the Jaguar and luxury townhouse he will buy. a. Does his optimistic outlook for his cash position appear to be justified? Yes No b. Compute the likely cash balance for the end of the year. (Negative answers should be indicated by a minus sign.) Cash balance EA Gibson Manufacturing Corporation expects to sell the following number of units of steel cables at the prices Indicated, under three different scenarios in the economy. The probability of each outcome is indicated. Outcome Probability 8.60 Units Price 275 $30 8.20 470 45 9.20 710 55 What Is the expected value of the total sales projection? Total expected value $ Central Networks had sales of 3,300 units at $55 per unit last year. The marketing manager projects a 15 percent Increase in unit- volume sales this year with a 20 percent Increase in price. Returned merchandise will represent 10 percent of total sales. What is your net dollar sales projection for this year? Net sales