II. (worth 6 points) The following information pertains to Cutler Company: Balance Sheet End of 2009 Cash 180,000 AR 160,000 Inventory 110,000 Fixed Assets 300.000 Less Accumulated Depr. 200.000 Net Fixed Assets 100,000 Total Assets 550.000 Accounts Payable 50,000 Bonds Payable 100,000 Common Stock 100.000 Capital paid in excess of Par 75,000 Retained Earnings 225.000 Total Liabilities and Stockholder's Equity 550.000 Income Statement SALES LESS COGS GROSS PROFIT LESS OPERATING EXPENSES LESS DEPRECIATION EXPENSE EBIT LESS INTEREST EXPENSE EBT LESS TAXES EAT $1,000,000 100.000 600.000 300.000 100.000 200.000 30.000 150.000 60.000 $90.000 Assume that the only variable assets are Accounts Receivable and Inventory and the only variable liability is Accounts Payable. Cutler is expected to increase sales next year by $300.000. Assuming the profit margin is 90% and that the dividend payout ratio is 40%. how much new financing will Cutler need