The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $3,900 Current assets $3,500 Current liabilities $970 Costs 1,900 Fixed assets 5,400 Long-term debt 3,680 Taxable income $2,000 Equity 4,250 Taxes (21%) 420 Total $8,900 Total $8,900 Net income $1,580 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. What is the external financing needed?

The most recent financial statements for Assouad, Inc., are shown here: $970 Income Statement Balance Sheet Sales Current $3,900 Current assets $3,500 liabilities Long-term Costs 1,900 Fixed assets 5,400 debt Taxable income $2,000 Equity Taxes (21%) 420 Total $8,900 Total Net income $1,580 3,680 4,250 $8,900 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. What is the external financing needed? Multiple Choice $847.50 $797.50 $920.00 $747.50 $1,040.00