Electric Chair and Table Co. expects sales next year to be $10,000,000. Inventory
And accounts receivable will increase by $1,400,000 and accounts payable will
Increase by $300,000. The company has a profit margin of 9 percent and pays
Out 30 percent of profits in dividends. How much external financing will be nec-
Essary? Assume there is no increase in liabilities other than that which will occur
With the external financing.
Could someone tell me how to solve this problem?

The answer has been given which is $1070000

sorry see the revised answer earlier I took 1400000 as account receivable and 300000 as inventory instead of account payable see the revised answer
Account receivables and inventory = 1400000
less account payable = 300000
less profit retained =630000
net requirement = 470000