Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $ million): Assets Liabilities and Equity Cash 38 Accounts payable 114 Accounts receivable 76 Current liabilities 114 Inventory 114 Long-term debt 152 Current assets 228 Total liabilities 266 Machinary 152 Equity 114 Total assets 380 Total liab. & equity 380 Income statement Sales 110 Costs 66 Depreciation 22 EBIT 22 Interest 7.6 Taxable income 14.4 Taxes 4.896 Net income 9.5 Sales, assets and costs (including depreciation) are expected to grow by 40% next year, while the tax rate and long-term debt will stay constant. The company pays out 60% of net income as dividends.

Part a) Using the percentage of sales method, what will be the net income next year (in $ million)?

Part b) Using the percentage of sales method, what should be the book value of equity by end of next year as a result of net income and dividend payout before any EFN is funded (in $ million)?

Part c) What is the external financing needed (EFN) for next year (in $ million)?