Sales and costs are projected to grow at 40% 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 70% 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 0.60.

What is the required external financing over the next year? (Enter excess cash as a negative number with 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 $ 220,000 160,000 $ 60,000 12,000 $ 48,000 16,800 $ 31,200 Dividends Addition to retained earnings 18,720 12,480 BALANCE SHEET, YEAR -END, 2017 Assets Liabilities Current assets Current liabilities Cash Accounts receivable Inventories $ 5,00e 10,000 25,000 $ 40,000 160,000 Accounts payable Total current liabilities 12,000 $ 12,000 120,000 23-9Long-term debt Total current assets Stockholders' equity Net plant and equipment Common stock plus additional paid-in capital Retained earnings 15,000 53,000 $ 200,000 Total assets $ 200,00 Total liabilities and stockholders' equity