https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=1.&postSubmissionView=13252709212075272&wid=13252711562932931&role=student&pid=17442786_3535324095_1_110968195

The 2017 financial statements for Growth Industries are presented below.

INCOME STATEMENT, 2017

Sales$300,000

Costs200,000

EBIT$100,000

Interest expense20,000

Taxable income$80,000

Taxes (at 35%)28,000

Net income$52,000

Dividends$15,600

Addition to retained earnings36,400

BALANCE SHEET, YEAR-END, 2017

Current assets

Cash 6,000

accounts receivable 11,000

inventories 33,000

total current assets 50,000

net plant and equipment 240,000

total assets 290,000

Liabilities

accounts payable 13,000

total current liabilities 13,000

long term debt 200,000

stockholders equity

common stock plus additional paid in capital 15000

retained earnings 62000

total liabilities and stockholders equity 290000

Sales and costs are projected to grow at 30% 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.)