Chapter 4 Long-Term Financial Planning and Growth 3. Calculating EFN [LO2] The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes): Income Statement Sales $7,200 Costs 4,730 Net income $2,470 Assets Balance Sheet $21,700 Debt Equity $21,700 Total $ 9,100 12,600 $21,700 Total Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $8,424. What is the external financing needed? EFN [LO2] The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Sales $25,400 Assets Costs 17,300 Taxable income $ 8,100 Total Taxes (21%) 1,701 Net income $ 6,399 Balance Sheet $61,000 Debt Equity $61,000 Total $26.900 34,100 $61,000 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,210. What is the external financing needed