The 2012 financial statements for Growth Industries are presented below.

INCOME STATEMENT, 2012
Sales		$	200,000
Costs			150,000
EBIT			50,000
Interest expense			10,000
Taxable income			40,000
Taxes (at 35%)			14,000
Net income		$	26,000
Dividends	10,400
Addition to retained earnings	15,600

BALANCE SHEET, YEAR-END, 2012
Assets			Liabilities
Current assets			Current liabilities
Cash	$	3,000	Accounts payable	$	10,000
Accounts receivable		8,000	Total current liabilities	$	10,000
Inventories		29,000	Long-term debt		100,000
Total current assets	$	40,000	Stockholders%u2019 equity
Net plant and equipment	$	160,000	Common stock plus additional paid-in capital		15,000
			Retained earnings		75,000
Total assets	$	200,000	Total liabilities plus stockholders%u2019 equity	$	200,000

Sales and costs in 2013 are projected to be 20% higher than in 2012. Both current assets and accounts payable are projected to rise in proportion to sales. The fixed assets of Growth Industries are operating at only 75% of capacity. Interest expense in 2013 will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of .40.

What is required external financing over the next year? (Leave no cells blank - be certain to enter "0" wherever required.)

Even if sales increase by 20%, the firm still has more than enough fixed assets to meet production. Only working capital will increase. Net working capital of the firm in 2012 was $. The increase in net working capital will be $, which is less than 2013 retained earnings. Thus required external financing is .