Managerial Finance

The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 210,000 Costs 155,080 EBIT $ 800'ss Interest expense 11,000 Taxable income 44,0ee Taxes (at 21%) 9,240 Net income $ 34,760 Dividends $ 17,380 Addition to retained earnings $ 17,380 BALANCE SHEET, YEAR-END, 2019 Assets Liabilities Current assets Current liabilities Cash $ 4,000 Accounts payable 11,000 Accounts receivable 9,000 Total current liabilities 11,000 Inventories 000'LZ Long-term debt 110,080 Total current assets 40,000 Stockholders' equity Net plant and equipment 150,000 Common stock plus additional paid-in capital 15,000 Retained earnings 54,090 Total assets $ 190, 000 Total liabilities plus stockholders' equity $ 190,000 Sales and costs are projected to grow at 20% 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 0.50. What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.)