460 $ 850 3,010 2,200 _850 Balance Sheet $ 630 Accounts payable 810 Long-term debt Common stock $1,980 Retained earnings 4,930 $6,910 Total liab. & equity Income Statement Net sales $5,800 Less: Cost of goods sold 3,850 Less: Depreciation Earnings before interest and taxes 1,490 Less: Interest paid 270 Taxable Income $1,220 Less: Taxes 320 Net income $ 900 Dividends $630 Cash Accounts rec. Inventory Total Net fixed assets Total assets 540 $6,910 11. Assume the firm has a constant dividend payout ratio and a projected sales increase of 15 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? a. $82.75 b. $147.00 c. $366.25 d. $598.50 12. Assume the profit margin is projected to increase to 8 percent while the dividend payout ratio remains constant. If sales increase by 14 percent, what is the projected total retained earnings? a. $158.69 b. $291.60 . $680.40 d . $1,008.69