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need help with part b Problem 4-29 Percent-of-sales method [LO4-3] Conn Man's Shops, a national clothing chain, had sales of $420 million last year. The
need help with part b Problem 4-29 Percent-of-sales method [LO4-3] Conn Man's Shops, a national clothing chain, had sales of $420 million last year. The business has a steady net profit margin of 8 percent and a dividend payout ratio of 25 percent. The balance sheet for the end of last year is shown. The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks, A sales increase of 10 percent is forecast for the company. All balance sheet items are expected to maintain the same percent-of-sales relationships as last year, except for common stock and retained eamings. No change is scheduled in the number of common stock shares outstanding, and retalned earnings will change as dictated by the piofits and dividend policy of the firm, (Remember, the net profit margin is 8 percent.) "This includes fixed assets, since the firm is at full capacity. a. Will extemal financing be required for the company during the coming year? No Yes b. What would be the need for extental financing af the net profit margin went up to 8.50 percent and the dividend payout ratio was incieased to 65 petcent? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in dollons, not milions, (e.9. 51,234,567). Input your answer as poshive a value
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