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

Income Statement		Balance Sheet
Sales	$22,200	Assets	$122,000	Debt	$31,600
Costs	16,400			Equity	90,400
Taxable income	$5,800	Total	$122,000	Total	$122,000
Taxes (30%)	1,740
Net income	$4,060

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,550 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $27,800.

Required:

What is the external financing needed?

rev: 09_17_2012

Multiple Choice

• $27,632

• $21,374

• $234,379

• $22,626

• $23,877