John S., the CFO of Vision Corporation, has created the firm s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 14 percent to $45 million. Current assets, fixed assets, and short-term debt are 25 percent, 65 percent, and 12 percent of sales, respectively. Vision Corporation pays out 30 percent of its net income in dividends. The company currently has $14.4 million of long-term debt and $16.2 million in common stock par value. The profit margin is 10 percent. Based on the CFO s sales growth forecast, how much does Vision Corporation need in external funds for the upcoming fiscal year? (Hint: you need to construct the balance sheet this year and determine the accumulated retained earnings before constructing the proforma balance sheet to determine the EFN)

$1.22 million

$0.84 million

$1.16 million

$0.94 million

$0.72 million