The most recent financial statements for acme feed inc., follow. Sales for 2014 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.

Sales				$	759,000
Costs					594,000
Other expenses					15,000
Earnings before interest and taxes				$	150,000
Interest paid					16,000
Taxable income				$	134,000
Taxes (30%)					40,200
Net income				$	93,800
Dividends	$	28,140
Addition to retained earnings		65,660

Acme Feed, INC. Balance Sheet as of December 31, 2013
Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$	21,840		Accounts payable	$	56,000
Accounts receivable		34,160		Notes payable		15,200
Inventory		71,120		Total	$	71,200
Total	$	127,120		Long-term debt	$	142,000
Fixed assets				Owners equity
Net plant and equipment	$	363,000		Common stock and paid-in surplus	$	128,000
				Accumulated retained earnings		148,920
				Total	$	276,920
Total assets	$	490,120		Total liabilities and owners equity	$	490,12

The firm is operating at full capacity and no new debt or equity is issued. Calculate the pro forma income statement and balance sheet for the company.

Pro Forma Income Statement

Sales

$

Costs

Other expenses

EBIT

$

Interest

Taxable income

$

Taxes (30%)

Net income

$

Pro Forma Balance Sheet

Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$			Accounts payable	$
Accounts receivable				Notes payable
Inventory				Total	$
Total	$			Long-term debt	$
Fixed assets				Owners equity
Net plant and equipment	$			Common stock and paid-in surplus	$
				Accumulated retained earnings
				Total	$
Total assets	$			Total liabilities and owners equity	$
What external financing is needed to support the 20 percent growth rate in sales? EFN=