For Financial Planning how do you define percentage of Sales approach for forecast or Budget? What are the items that do not vary with Sales? (8 Marks)

The financial statement of YZ & Company is as follows:

Income Statement
Sales	26,400
Costs	17,300
Taxable Income	9,100
Taxes 40%	3,640
Net Income	5,460

Balance Sheet
Assets	65,000	Debt	27,400
		Equity	37,600
Total	65,000	Total	65,000

Assets and Costs are proportional to sales. Debt and Equity are not. A dividend of 3,200 was paid and the company wishes to maintain a constant pay out ratio (dividend). Next years sales are projected to be 30,360. What is the external financing required? (12 Marks)