11. EFN (L04, CFA8) The most recent financial statements for Martin, Inc., are shown here:

Income Statement Balance Sheet Sales $27,500 Assets $105,000 Debt $ 43,000 Costs (19,450) Equity 62,000 Taxable income $ 8,050 Total $105,000 Total $105,000 Taxes (21%) (1,691)

Net income $ 6,359 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $850 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be

$31,625. What is the external financing needed?