Upton's Computers makes bulk purchases of small cpmputers, stocks them in conveniently located warehouses, and ships them to its chain of retail stores. Upton's balance sheet as of December 31, 2006 is shown here (millions of dollars)

Sales for 2006 were $350 millions, while ner income for the year was $10.5 million. Upton's paid dividends of $4.2 million to common stockholders. The firm is operating at full capacity. Assume that all ratios remain constant.

a. if sales are projected to increase by $70 million, or 20%, during 2007, determine Upton's projected external capital requirments.

b. Determine Upton's projected external capital requirement if the increase in sales is expexted to be carried out without any expansion of fixed assets.

c- How much can sales grow above 2006 of $350 miilion without requiring any additional funds?