Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $ million):

Assets			Liabilities and Equity
Cash	41		Accounts payable	123
Accounts receivable	82		Current liabilities	123
Inventory	123		Long-term debt	164
Current assets	246		Total liabilities	287
Machinary	164		Equity	123
Total assets	410		Total liab. & equity	410

Income statement
Sales	90
Costs	54
Depreciation	18
EBIT	18
Interest	4.92
Taxable income	13.08
Taxes	4.447
Net income	8.63

Sales, assets and costs (including depreciation) are expected to grow by 37% next year, while the tax rate and long-term debt will stay constant. The company will pay out 50% of net income as dividends next year.

Part 1

1. Using the percentage of sales method, what will be the net income next year (in $ million)?

2. Using the percentage of sales method, what should be the book value of equity by end of next year as a result of net income and dividend payout before any EFN is funded (in $ million)?

3. What is the external financing needed (EFN) for next year (in $ million)?