The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Sales $ 7,100 Costs 5,850 Current assets Fixed assets Balance Sheet $ 3,800 Current liabilities $ 2,200 9,800 Long-term debt 3,750 Taxable income $1,250 Equity 7,650 Taxes (34%) 425 Total $ 13,600 Total $ 13,600 Net income $ 825 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 12 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) External financing needed Income Statement Sales $ 18,000 Costs 12,100 Taxable income $ 5,900 Current assets Fixed assets Balance Sheet $ 11,900 Debt 28,750 Equity $ 16,400 24,250 Total $ 40,650 i Total $ 40,650 Taxes (40%) 2,360 Net income $ 3,540 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Internal growth rate Hints References eBook & Resources