The most recent financial statements for Locke, Inc., are shown here:

Assets and costs are proportional to sales; debt and equity are not. A dividend of $2,200 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $53,100. What is the external financing needed?

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INCOME STATEMENT BALANCE SHEET Sales $45,000 Assets $104,500 Debt $ 28,200 Costs 36,100 Equity 76,300 Taxable income $ 8,900 Total $104,500 Total $104,500 Taxes (24%) 2,136 Net income $ 6,764