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Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes): Income Statement Sales $30472 Costs $25222 Balance Sheet Assets $57882 Debt

Consider the following simplified financial statements for the Fire Corporation (assuming no income taxes):

Income Statement

Sales

$30472

Costs

$25222

Balance Sheet

Assets

$57882

Debt

$17927

Equity

?

The company has predicted a sales increase of 7 percent. Assume Fire pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.

Determine the external financing needed.

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