corporate finance chapter 18 question 4

The 2019 financial statements for Growth Industries are presented below. $ $ INCOME STATEMENT, 2019 Sales Costs EBIT Interest expense Taxable income Taxes (at 21%) Net income Dividends $ 26,544 Addition to retained earnings $ 61,936 380,000 240,000 140,000 28,000 112,000 23520 88,480 $ $ Assets Current assets Cash Accounts receivable Inventories Total current assets Net plant and equipment $ $ BALANCE SHEET, YEAR-END, 2019 Liabilities Current liabilities $ 7,000 Accounts payable 12.000 Total current liabilities 31,080 Long-term debt $ 50,000 Stockholders' equity 320,000 Common stock plus additional paid-in capital Retained earnings $ 370,000 Total liabilities plus stockholders' equity 14,000 14,000 280,000 15,000 61,000 370.000 Total assets $ Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at 75% capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 0.30 What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.) External financing