PROBLEM 2: Karl Company, had sales of $200 million last year. The business has a steady net profit margin of 12 percent and a dividend payout ratio of 40 percent. The balance sheet for the end of last year is shown below. Balance Sheet End of Year (in $ millions) Assets Liabilities and Stockholders' Equity Cash S 10 Accounts payable $ 15 Accounts receivable 15 Accrued expenses 5 Inventory 50 Other payables 40 Plant and equipment 75 Common stock 30 Retained earnings 60 Total liabilities and Total assets $150 stockholders' equity $150 Karl's sales in this coming year is forecasted to increase 20 %. 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 is scheduled in the number of common stock shares outstanding, and retained earnings will change as dictated by the profits and dividend policy of the firm. a. Will external financing be required for the company during the coming year