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 10 percent. The balance sheet for the end of last year is shown below Assets Cash Account recevable Inventory Plant and equipment ce Set December 2015 noh). Liabilities and Shareholders' Equity Accounts payable Accrued expenses other payables Comon stock 140 Retained earnings $240 Total liabilities and equity 65 530 12 18 88 100 17 Total assets $240 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 No