The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 25 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.

If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales?

CROSBY, INC. 2017 Income Statement Sales Costs Other expenses $ 751,000 586,000 22,000 Earnings before interest and taxes Interest paid $ 143,000 18,000 Taxable income Taxes (23%) $ 125,000 28,750 Net income $ 96,250 Dividends Addition to retained earnings $29,838 66,412 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,040 Accounts payable $ 55,200 Accounts receivable 43,980 Notes payable 14,400 Inventory 95,960 Total $ 69,600 Total $160,980 Long-term debt $ 134,000 Fixed assets Net plant and equipment Owners' equity Common stock and paid-in $427,000 surplus $ 116.500 Retained earnings 267,880 Total $384,380 Total assets $587,980 Total liabilities and owners' equity $587,980 CROSBY, INC. 2017 Income Statement Sales Costs Other expenses $ 751,000 586,000 22,000 Earnings before interest and taxes Interest paid $ 143,000 18,000 Taxable income Taxes (23%) $ 125,000 28,750 Net income $ 96,250 Dividends Addition to retained earnings $29,838 66,412 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,040 Accounts payable $ 55,200 Accounts receivable 43,980 Notes payable 14,400 Inventory 95,960 Total $ 69,600 Total $160,980 Long-term debt $ 134,000 Fixed assets Net plant and equipment Owners' equity Common stock and paid-in $427,000 surplus $ 116.500 Retained earnings 267,880 Total $384,380 Total assets $587,980 Total liabilities and owners' equity $587,980