Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,200 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $33,000.

What is the external financing needed?

Income Statement				Balance Sheet
Sales	$	30,000		Assets	$	56,100		Debt	$	20,500
Costs		22,000						Equity		35,600
Taxable income	$	8,000		Total	$	56,100		Total	$	56,100
Taxes (40%)		3,200
Net income	$	4,800