The following is the balance sheet for CM shops Inc.

CM Shops Inc. Balance Sheet (in Millions)
Assets		Liabilities and Shareholders Equity
Cash	40	Acct Payable	70
Acct Receivable	45
Inventory	45	Long Term Debt	80
Fixed Assets	170	Common Stock and Retained Earnings	150
Total Assets	300	Total Liabilities & Shareholder Equity	300

Part A

Sales for last year were $280 million, and are expected to grow by 14% for next year. All assets and current liabilities will vary directly with sales. The firm is working at full capacity. The business has a steady net profit margin of 7%, and a dividend payout ratio of 40%.

Calculate the amount of external funds required to finance this growth using the percentage of sales method.

Enter your answer to 3 decimal places in millions of dollars. --> External financing required is

.

Part B - Now assume that the firms fixed asset utilization last year was at 95% and the firm was not operating at full capacity.

What is your projection for the level of fixed assets required to reach the sales growth forecast in part A. Enter your answer to 2 decimal places in millions of dollars.

What would the external financing needed? Enter your answer to 3 decimal places in millions of dollars.