The 2017 financial statements for Growth Industries are presented below. What is the required external fianacing over the next year? See attachment.

Assignment Print View 1 of 1 http://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQ... 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 $ 28,600 Dividends Addition to retained earnings 28,600 $ $ $ $ 320,000 210,000 110,000 22,000 88,000 30,800 57,200 BALANCE SHEET, YEAR-END, 2017 Assets Current assets Cash Accounts receivable Inventories Total current assets Net plant and equipment 8,000 13,000 39,000 $ 60,000 260,000 Total assets $ 320,000 $ Liabilities Current liabilities Accounts payable Total current liabilities Long-term debt Stockholders' equity Common stock plus additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ $ 15,000 15,000 220,000 15,000 70,000 $ 320,000 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 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.) External financing $ 29,680 References Worksheet Difficulty: Challenge Learning Objective: 18-03 Estimate the effect of growth on the need for external financing. 10/12/2017, 6:04 PM