Problem 4-27 Percent-of-sales method [L04-3] Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity Balance Sheet (in $ millions) Assets Liabilities and Stockholders' Equity $ 7 Accounts payable s 20 Cash Accounts receivable Inventory 25 Accrued wages 28 Accrued taxes 60 Current liabilities 45 Notes payable 13 S 40 Current assets Fixed assets 15 20 30 $105 Common stock Retained earnings $105 Total liabilities and stockholders equity Total assets Owen's has an aftertax profit margin of 10 percent and a dividend payout ratio of 45 percent If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g $1,234,567).) Answer is complete but not entirely correct. New funds S- 7,500,000