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Scooterville Transport Company expects sales next year to be $800,000. Inventory and accounts receivable will increase $100,000 to accommodate this sales level. The company has

Scooterville Transport Company expects sales next year to be $800,000. Inventory and accounts receivable will increase $100,000 to accommodate this sales level. The company has a steady profit margin of 15 percent with a 35 percent dividend payout. How much external financing will Scooterville Company have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.

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