Owen$$s Electronics has nine operating plants in seven Southwestern states. Sales for last year were $$100$ million, and the balance sheet at year$-$end is similar in percentage of sales to that of previous years $($and this will continue in the future$).$ All assets $($including fixed assets$)$ and current liabilities will vary directly with sales. The firm is working at full capacity.

Balance Sheet

$($in $ millions$)$

Assets Liabilities and Stockholders$$ Equity

Cash $ $7$ Accounts payable $$20$

Accounts receivable $25$ Accrued wages $7$

Inventory $28$ Accrued taxes $13$

Current assets $$60$ Current liabilities $$40$

Fixed assets $45$ Notes payable $15$

Common stock $20$

Retained earnings $30$

Total assets $$105$ Total liabilities and

stockholders$$ equity $$105$

Owen$$s has an after$-$tax profit margin of $10$ percent and a dividend payout ratio of $45$ percent. If sales grow by $20$ percent next year, determine how many dollars of new funds are needed to finance the growth.

$1.$ Construct a pro format balance sheet

$2.$ Calculate the RNF$.($Require new funds$).$