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Conn Man’s Shops, a national clothing chain, had sales of $340million last year. The business has a steady net profit margin of 8percent and a dividend payout ratio of 35 percent. The balancesheet for the end of last year is shown next.Balance SheetEnd of Year(in $ millions)AssetsLiabilities and Stockholders' EquityCash$34Accounts payable$64Accounts receivable29Accrued expenses30Inventory75Other payables59Plant and equipment100Common stock68Retained earnings17Total assets$238Total liabilities and stockholders' equity$238The firm's marketing staff has told the president that in thecoming year there will be a large increase in the demand forovercoats and wool slacks. A sales increase of 20 percent isforecast for the company.All balance sheet items are expected to maintain the samepercent-of-sales relationships as last year,* except for commonstock and retained earnings. No change is scheduled in the numberof common stock shares outstanding, and retained earnings willchange as dictated by the profits and dividend policy of the firm.(Remember the net profit margin is 8 percent.)*This includes fixed assets since the firm is at fullcapacity.a. Will external financing be required for thecompany during the coming year? NoYesb. What would be the need for external financingif the net profit margin went up to 10.00 percent and the dividendpayout ratio was increased to 60 percent?(Negative amount should be indicated by aminus sign. Do not round intermediate calculations.Enter your answer in dollars, not millions, (e.g.,$1,234,567).) Required new funds