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The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 370,000 Costs 235,000 EBIT $ 135,000 Interest expense 27,000 Taxable

The 2019 financial statements for Growth Industries are presented below.

INCOME STATEMENT, 2019
Sales $ 370,000
Costs 235,000
EBIT $ 135,000
Interest expense 27,000
Taxable income $ 108,000
Taxes (at 21%) 22,680
Net income $ 85,320
Dividends $ 51,192
Addition to retained earnings $ 34,128

BALANCE SHEET, YEAR-END, 2019
Assets Liabilities
Current assets Current liabilities
Cash $ 6,000 Accounts payable $ 13,000
Accounts receivable 11,000 Total current liabilities $ 13,000
Inventories 33,000 Long-term debt 270,000
Total current assets $ 50,000 Stockholders equity
Net plant and equipment 310,000 Common stock plus additional paid-in capital 15,000
Retained earnings 62,000
Total assets $ 360,000 Total liabilities plus stockholders' equity $ 360,000

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 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 0.60.

What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.)

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