The financial statements of ABC company for 2018 are given below. The company expects its sales, costs and total assets to grow by 20% in 2019. Interest expense in 2019 will be 10% of the outstanding long-term debt at the beginning of the year. If the company plans to maintain its current payout ratio in 2019, how much external financing will the firm need in 2019? The tax rate will remain constant.

INCOME STATEMENT, 2018
Sales				200,000 $
Costs				150,000
CHIEFS				50,000
interest expense				10,000
taxable income				40,000
Taxes (35%)				14,000
Net income dividends				26,000 10,400
YEAR-END BALANCE SHEET
			2018
assets
Current Assets			40,000
fixed assets			160,000
Total assets			200,000
Liabilities and equity
Current Liabilities			10,000
long-term debt			100,000
Equality			90,000
Total liabilities and equity			200,000