Problem 4-4 EFN [LO2]

The most recent financial statements for Cardinal, Inc., are shown here:

Income Statement				Balance Sheet
Sales	$	31,000		Assets	$	73,200		Debt	$	36,700
Costs		18,400						Equity		36,500
Taxable income	$	12,600		Total	$	73,200		Total	$	73,200
Taxes (22%)		2,772
Net income	$	9,828

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,700 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $35,340.

What is the external financing needed? (Do not round intermediate calculations.)