E4)

You are given the following financial statement information: 2019 Income Statement Sales 15,250 Costs 11,110 Taxable income 2,000 Taxes 700 Net Income 1,300 Dividends 400 Balance Sheet 2019 Current Assets 2.300 Current Liabilities 1,500 Net Fixed Assets 12,000 Long-Term Debt 4,400 Common Stock 5,500 Retained Earnings 4.190 Assume that assets and costs vary directly with sales. Also assume that the tax rate and the dividend payout ratio are constant. The firm is currently operating at full capacity. What is the external financing needed if sales increase by 12 percent? Multiple Choice -$810 -$1,950 -$762 $810 -$2,453