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 0.40. What is the required external financing over the next year?

1 The 2019 financial statements for Growth Industries are presented below. 7.33 points INCOME STATEMENT, 2019 Sales Costs EBIT Interest expense Taxable income Taxes (at 21%) Net income Dividends $ 16,432 Addition to retained earnings $ 24,648 $ 230,000 165,000 $ 65,000 13,000 $ 52,000 10,920 $ 41,080 eBook Print Assets Current assets Cash Accounts receivable Inventories Total current assets Net plant and equipment BALANCE SHEET, YEAR-END, 2019 Liabilities Current liabilities $ 6,000 Accounts payable 11,000 Total current liabilities 23,000 Long-term debt $ 40,000 Stockholders' equity 170,000 Common stock plus additional paid-in capital Retained earnings $ 210,000 Total liabilities plus stockholders' equity $ 13,000 $ 13,000 130,000 15,000 52,000 $ 210,000 Total assets 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 0.40. What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.) External financing