The 2019 financial statements for Growth Industries are presented below.

INCOME STATEMENT, 2019

Sales $390,000

Costs 245,000

EBIT $145,000

Interest expense 29,000

Taxable income $116,000

Taxes (at 21%) 24,360

Net income $91,640

Dividends $36,656

Addition to retained earnings $54,984

BALANCE SHEET, YEAR-END, 2019

Assets Liabilities

Current assets Current liabilities

Cash $8,000 Accounts payable $15,000

Accounts receivable13,000 Total current liabilities $15,000

Inventories 29,000 Long-term debt 290,000

Total current assets $50,000 Stockholders' equity

Net plant and equipment330,000 CS+ add paid-in capital 15,000

Retained earnings 60,000

Total assets$380,000 Total liabilities plus stockholders' equity$380,000

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 75% 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 0.40.

What is the required external financing over the next year?