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 12 percent? OA) $2,260 OB) $1,426 OC) $3,504 OD)-$1,816 OE) -$1,268 Income Statement For the Year Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Dividends $1,925 Balance Sheet End-of-Year Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets $42,700 29,250 3,750 $ 9,700 1,360 $ 8,340 2,840 $ 5,500 $ 1,320 3,780 10,200 $15,300 33,600 $48,900 Accounts payable Long-term debt Common stock ($1 par value) Retained earnings Total Liab. & Equity $ 3,650 18,100 15,000 12,150 $48,900