1.

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

Income Statement				Balance Sheet
Sales	$	23,600		Assets	$	54,300		Debt	$	20,300
Costs		14,600						Equity		34,000
Taxable income	$	9,000		Total	$	54,300		Total	$	54,300
Taxes (40%)		3,600
Net income	$	5,400

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $26,904.

What is the external financing needed?

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

Income Statement				Balance Sheet
Sales	$	7,400		Current assets	$	4,100		Current liabilities	$	2,200
Costs		6,000		Fixed assets		9,800		Long-term debt		3,750
Taxable income	$	1,400						Equity		7,950
Taxes (34%)		476		Total	$	13,900		Total	$	13,900
Net income	$	924

Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 15 percent.

What is the external financing needed? (Round your answer to 2 decimal places. (e.g., 32.16))