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 Pro forma statement method, determine how much outside financing is required. Plug numbers in the pro forma statement in below.

Cash		Accounts payable
Marketable securities		Notes Payable
Accounts receivable		Accruals
Inventory		Current liabilities
Current Assets		Long-term debt
		Common stock
Fixed assets		Retained earnings
Total assets		Total liabilities and equity
		AFN=EFN