The most recent balance sheet is as follow:

Cash	1,000,000	Accounts payable	700,000
Marketable securities	800,000	Notes Payable	2,000,000
Accounts receivable	1,200,000	Accruals	1,300,000
Inventory	2,000,000	Current liabilities	4,000,000
Current Assets	5,000,000	Long-term debt	5,400,000
		Common stock	4,600,000
Fixed assets	15,000,000	Retained earnings	6,000,000
Total assets	20,000,000	Total liabilities and equity	20,000,000

The firm estimates sales will increase from $40 million to $50 million. The firm's profit margin is 5 percent, and its dividend payout ratio is 40 percent. The firms fixed assets were used to only 96% of the capacity.

Using the AFN formula method, determine how much outside financing is required.

Expand the following equation by plugging numbers in the last term.