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Need assistance with the following question. How do I find the external financing? INCOME STATEMENT, 201 7 Sales 5 270,000 Costs 185, 000 EBIT $

Need assistance with the following question.

How do I find the external financing?

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INCOME STATEMENT, 201 7 Sales 5 270,000 Costs 185, 000 EBIT $ 85, 000 Interest expense 17,000 Taxable income 5 68,000 Taxes (at 3595} 23,800 Net income 5 44,200 Dividends S 17, 680 Addition to retained earnings 26, 520 BALANCE SHEET, YEAREND, 2017 Assets Liabilities Current assets Current liabilities Cash 5 3,000 Accounts payable S 10,000 Accounts receivable 5,000 Total current liabilities $ 10,000 Inventories 29,000 Longiterm debt 170,000 Total current assets 3 40,000 Stockholders' equity Net plant and equipment 210,000 Common stock plus additional paidin capital 15,000 Retained earnings 55, 000 Total assets 5 250,000 Total liabilities and stockholders' equity 3 2501000 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 rm is currently operating at 75% capacity, so it plans to increase xed assets in proportion to sales. Interest expense will equal 10% of longterm debt outstanding at the start ofthe year. The rm will maintain a dividend payout ratio of 0.40. What is the required external nancing over the next yea r? (Enter excess cash as a negative number with a minus sign.)

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