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?

The most recent financial statements for Heine, Inc., are shown here: Income Statement Sales $ 30,000 Costs 22,000 Assets Balance Sheet $ 56,100 Debt Equity $ 20,500 35,600 Total $ 56,100 Total $ 56,100 Taxable income $ 8,000 Taxes (40%) Net income $ 4,800