3.

Income Statement Sales Costs Balance Sheet Current 3,900 liabilities assets Current 2,100 assets 8,600 Long-term 3,700 5,500Fixed debt Taxable income $2,400 Equity 6,700 Taxes (25%) 600 Total $12,500 Total $12,500 Net income $ 1,800 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)