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

Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 15 percent. What is the external financing needed?

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Income statement Balance Sheet $7,900 Current assets 5,500 Fixed assets $ 3,900 Current liabilities 8,600 Long-term debt $ 2,100 3,700 Sales Costs Taxable income Taxes (25%) Net income $2,400 Equity Total 6,700 Total 600 $12,500 $12,500 $1,800