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Problem 18-18 Required External Financing (LO3) Here are the abbreviated financial statements for Planners Peanuts: INCOME STATEMENT, 2019 Sales $ 11,000 Cost 8,700 Net income

Problem 18-18 Required External Financing (LO3)

Here are the abbreviated financial statements for Planners Peanuts:

INCOME STATEMENT, 2019
Sales $ 11,000
Cost 8,700
Net income $ 2,300

BALANCE SHEET, YEAR-END
2018 2019 2018 2019
Assets $ 10,500 $ 11,000 Debt $ 853 $ 1,000
Equity 9,647 10,000
Total $ 10,500 $ 11,000 Total $ 10,500 $ 11,000

Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2020 of (a) 25%, (b) 30%, and (c) 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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