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Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 34,000 Assets $ 26,500 Debt

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

Income Statement Balance Sheet
Sales $ 34,000 Assets $ 26,500 Debt $ 7,000
Costs 27,330 Equity 19,500
Net income $ 6,670 Total $ 26,500 Total $ 26,500

The company has predicted a sales increase of 15 percent. Assume Yoo 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.

Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.)

What is the external financing needed? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)

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