Austin Boston corporation's balance sheet for last year is present below:
Cash $ 400,000 Accounts payable $1,500,000
accounts receivable 2,000,000 Notes payable 1,000,000
Inventory 3,000,000 Mortgage 2,500,000
Fixed assets 3,600,000 Common stock 2,500,000
Retained earnings 1,500,000
Total Assets $9,000,000 Total liabilities & equity $9,000,000
Sales last year were $10,000,000 and they are expected to increase by 20 percent next year. Net profit margin is forecasted to be 8%. Austin Boston plans to pay dividends of 60%. Management expects that the sales increase can be handled by existing fixed assets. How much external funds does Austin Boston need next year?