8. Use the below information to answer the following question.

Income Statement
For the Year
Sales	$42,700
Cost of goods sold	29,250
Depreciation	3,750
Earnings before interest and taxes	$ 9,700
Interest paid	1,360
Taxable income	$ 8,340
Taxes	2,840
Net income	$ 5,500
Dividends $1,925

Balance Sheet
End-of-Year
Cash	$1,320
Accounts receivable	3,780
Inventory	10,200
Total current assets	$15,300
Net fixed assets	33,600
Total assets	$48,900
Accounts payable	$ 3,650
Long-term debt	18,100
Common stock ($1 par value)	15,000
Retained earnings	12,150
Total Liab. & Equity	$48,900

Assume this firm is operating at full capacity. Also assume that assets, costs, and current liabilities

vary directly with sales. The dividend payout ratio is constant. What is the external financing need

if sales increase by 14 percent?