The most recent financial statements for 2 Doors Down, Inc., are shown here:

Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. 2 Doors Down maintains a constant 50 percent dividend payout ratio. Like every other firm in its industry, next year’s sales are projected to increase by exactly 16%. What is the external financing needed?

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Income Statement Sales Costs Taxable income Taxes (34%) Net income $3,100 2,600 $ 500 170 $ 330 Current assets Fixed assets Total Balance Sheet $4,000 Current liabilities 3,000 Long-term debt Equity $7,000 Total $ 750 1,250 5,000 $7,000