Maple Leaf Entertainment had sales of $$350$ million last year. The business has a steady net profit margin of $15$ percent and a dividend payout ratio of $35$ percent. The balance sheet for the end of last year is shown below:

Maple Leaf anticipates a large increase in the demand for athletic attire. A sales in trease 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 Maple Leaf Entertainment during the coming year? $($show all calculations to support your answer$)$

Yes

No

b$.$ What would the need for external financing be if the net profit r went up to $20$ percent and the dividend payout ratio was increased to $70$ percent? $($Enter the answer in millions. Round the $($answer to $2$ decimal places.$)$

Required new funds

million