The CFO of a company has created the firm s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 20 percent to $42 million. Current assets, fixed assets, and short-term debt are 35 percent, 80 percent, and 15 percent of sales, respectively. The company pays out 40 percent of its net income in dividends. The company currently has $7 million of long-term debt and $15.75 million in common stock par value. The profit margin is 10 percent. Based on the CFO s sales growth forecast, how much does the company need in external funds for the upcoming fiscal year? (Hint: you need to construct the balance sheet this year and determine the accumulated retained earnings before constructing the proforma balance sheet to determine the EFN)

		$4.85 million
		$4.48 million
		$3.86 million
		$3.32 million
		$5.24 million