ww Harvard Prep Shops, a national clothing chain, had sales of $300 milion last year. The business has a steady net profit margin of 30 percent and a dividend payout ratio of 30 percent. The balance sheet for the end of last year is shown below. Cash Assets Account receivable Leventory Plant and equipment Total assets Balance Sheet December 11, 20xx s sillons) Liabilities and Shareholders' Equity 35 Accounts payable 24 Accrued expenses 69 Other payables Connon stock 160 Retained earning $250 Total abilities and equity $16 12 14 40 120 3258 Harvard's anticipates a large increase in the demand for tweed sport coats and deck shoes. A sales increase of 30 percent is forecast All balance sheet items are expected to maintain the same percent of sales relationships as last year, except for common stock and retained earnings. No change in the number of common shares outstanding scheduled, and retained earnings will change as dictated by the profits and dividend policy of the fimm a. Wil external financing be required for the Prep Shop during the coming year? Yes ENO Help Save & Exit Submit Account receivable Inventory 55 24 69 516 Accounts payable Accrued expenses Other payables Common stock Retained earnings Total liabilities and equity Plant and equipment Total assets 12 14 40 175 160 5258 5255 Harvard's anticipates a large increase in the demand for tweed sport coats and deck shoes. A sales increase of 30 percent is forecast All balance sheet items are expected to maintain the same percent-of-sales relationships as last year, except for common stock and retained earnings. No change in the number of common shares outstanding is scheduled and retained earnings will change as dictated by the profits and dividend policy of the firm. . Will external financing be required for the Prep Shop during the coming year? Yes No b. What would the need for external financing be if the net profit margin went up to 35 percent and the dividend payout ratio was Increased to 65 percent Enter the answer in millions. Round the final answer to 2 decimal places) Required new funds milion