Financial Planning (Chapter 14): Following are financial statements for the Adrienne Nelson (AN) Manufacturing Corporation for 2022 and 2021. AN Mamufacturing Corporation expects its sales to increase by 10% in 2023. Estimate the AN Manufacturing Corporation's "External Financing Needs" by using the percent-of-sales method for the 2022 data. Assume that no excess capacity exists and that one-half of the 2023 expected net income will be retained in the business. \begin{tabular}{|l|r|r|} \hline Income Statement & \multicolumn{1}{|c|}{2022} & \multicolumn{1}{|c|}{2021} \\ \hline Net sales & $1,500,000 & $1,300,000 \\ \hline Costs of goods sold & 900,000 & 780,000 \\ \hline Gross profit & 600,000 & 520,000 \\ \hline Expenses: general \& administrative & 150,000 & 150,000 \\ \hline Marketing & 150,000 & 130,000 \\ \hline Depreciation & 53,000 & 40,000 \\ \hline Interest & 57,000 & 45,000 \\ \hline Earnings before taxes & 190,000 & 155,000 \\ \hline Taxes & 76,000 & 62,000 \\ \hline Net Income & $114,000 & $93,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Balance Sheet & 2022 & 2021 \\ \hline \multicolumn{3}{|l|}{ ASSETS } \\ \hline Cash & $40,000 & $50,000 \\ \hline Accounts Receivables & 260,000 & 200,000 \\ \hline Inventory & 500,000 & 450,000 \\ \hline Total Current Assets & 800,000 & 700,000 \\ \hline Net Fixed Assets & 400,000 & 300,000 \\ \hline Total Assets & $1,200,000 & $1,000,000 \\ \hline \multicolumn{3}{|l|}{ LIABILITIES \& EQUITY } \\ \hline Accounts Payable & $170,000 & $130,000 \\ \hline Bank Loan & 90,000 & 90,000 \\ \hline Accruals & 70,000 & 50,000 \\ \hline Total Current Liabilities & 330,000 & 270,000 \\ \hline Long term debt (12%) & 400,000 & 300,000 \\ \hline Common Stock, \$10 par & 300,000 & 300,000 \\ \hline Capital surplus & 50,000 & 50,000 \\ \hline Retained earnings & 120,000 & 80,000 \\ \hline Total liabilities \& equity & $1,200,000 & $1,000,000 \\ \hline \end{tabular}