2. Financial statements of ABC company for the year 2018 is provided below. Company expects to its sales, costs and total assets to grow 20% in year 2019. Interest expense in 2019 will be 10% of long-term debt outstanding at the start of the year. If company plans to maintain current payout ratio in 2019, how much external financing will the firm require in 2019? Tax rate will remain constant. INCOME STATEMENT, 2018 Sales Costs EBIT Interest Expense Taxable income Taxes (35%) Net Income Dividends $200,000 150,000 50,000 10,000 40,000 14,000 26,000 10,400 BALANCE SHEET, YEAR-END 2018 40,000 160,000 200,000 Assets Current Assets Fixed assets Total assets Liabilities and shareholders' equity Current Liabilities Long-Term Debt Equity Total liabilities and shareholders' equity 10,000 100,000 90,000 200,000