Johnson Motors, which is currently operating at full capacity, has sales of $29,000 with a 5 percent profit margin, and current assets of $2,600, current liabilities of $1,200, and net fixed assets of $36,500. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 4.5 percent next year.

If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?

$ 124.50

$ 190.25

$ 327.50

$1,705.50

$1,759.50