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John Scott, CFO of Dartmouth Manufacturing has created the firm’s pro forma balance sheet for the...

John Scott, CFO of Dartmouth Manufacturing has created the firm’s pro forma balance sheet for the next fiscal year. This year’s sales of $600 million are projected to grow by 10% to $660 million next year. Current assets, fixed assets, and short-term debt are 20%, 140%, and 15% of sales, respectively. Dartmouth Manufacturing pays 30% of its net income in dividends. The company currently has $150 million of long-term debt and $70 million in common stock par value. Retained earnings are $375 million. The profit margin (net income/sales) is 10%. Based on Mr. Scott’s sales forecast, how much does the firm need in external funds for the coming year?

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