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 firm is currently operating at full 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 0.50.

What is the required external financing over the next year? (Negative amounts should be indicated by a minus sign.)

The 2017 financial statements for Growth Industries are presented below INCOME STATEMENT, 2017 Sales Costs EBIT Interest expense Taxable income Taxes (at 35%) Net income $ 240,000 170,000 $ 70,000 14,000 $ 56,000 19,600 $ 36,400 Dividends Addition to retained earnings 18,200 18,200 BALANCE SHEET, YEAR -END, 2017 Assets Liabilities Current assets Current liabilities Cash Accounts receivable Inventories $ 7,000 12,000 21,000 $ 40,000 180,000 Accounts payable Total current liabilities 14,000 $ 14,000 140,000 2119Long-term debt Total current assets Stockholders' equity Net plant and equipment Common stock plus additional paid-in capital Retained earnings 15,000 51,000 $ 220,000 Total assets $ 220,90 Total liabilities and stockholders' equity