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The most recent financial statements for Crosby, Incorporated, follow. Sales for 2 0 2 1 are projected to grow by 2 0 percent. Interest expense

The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 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.
CROSBY, INCORPORATED
2020 Income Statement
Sales $ 686,530
Costs 554,420
Other expenses 14,020
Earnings before interest and taxes $ 118,090
Interest paid 12,090
Taxable income $ 106,000
Taxes (21%)22,260
Net income $ 83,740
Dividends $ 27,475
Addition to retained earnings 56,265
CROSBY, INCORPORATED
Balance Sheet as of December 31,2020
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 20,940 Accounts payable $ 53,790
Accounts receivable 31,970 Notes payable 13,215
Inventory 71,320 Total $ 67,005
Total $ 124,230 Long-term debt $ 127,500
Fixed assets Owners equity
Net plant and equipment $ 341,980 Common stock and paid-in surplus $ 105,000
Retained earnings 166,705
Total $ 271,705
Total assets $ 466,210 Total liabilities and owners equity $ 466,210
If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales?

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