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The most recent financial statements for Cornwall, Inc., are shown here: Income Statement Balance Sheet Sales $ 6,500 Current assets $ 3,200 Current liabilities $

The most recent financial statements for Cornwall, Inc., are shown here:

Income Statement Balance Sheet
Sales $ 6,500 Current assets $ 3,200 Current liabilities $ 2,200
Costs 5,200 Fixed assets 10,200 Long-term debt 3,750
Taxable income $ 1,300 Equity 7,450
Taxes (34%) 442 Total $ 13,400 Total $ 13,400
Net income $ 858

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 years sales are projected to increase by exactly 15 percent.

What is the external financing needed?

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