Last year, Lombardi Corporation had sales of $200 and ended the year with the balance sheet below. For this year, management forecasts sales of $240, net income of $12, and dividends of $6. Long-term debt and common stock are discretionary; the remaining accounts are spontaneous. Forecast Lombardis external financing needed (EFN) for this year using the percentage-of-sales method.

Cash $ 20 Accounts payable $ 30

Accounts receivable 50 Long-term debt 100

Inventories 60 Common stock 60

Plant and equipment 120 Retained earnings 60

TOTAL ASSETS $ 250 TOTAL LIAB & EQUITY $ 250

a. $32.

b. $38.

c. $6.

d. $18.