Please refer to Oscar's financial statements. Assume a constant net profit margin and dividend payout ratio, and further assume all of Oscar's assets and current liabilities vary directly with sales. Assume long-term debt and common stock remain unchanged. Sales are projected to increase by 10 percent. What is the external financing need for next year?

Oscar's Incredible Eatery ($ thousands) 2012 Income Statement 17,300 10,600 3.250 3,450 Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest expense Earnings before tax Tax Earnings after tax Dividends 680 2,770 940 1,830 450 350 940 2012 Balance Sheet Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets Accounts payable Long-term debt Common stock Retained earnings 1,920 3,500 7.500 2,360 3.650 1,580 10,850 14,500 Total liab. & equity 14,500 |