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

Income Statement		Balance Sheet
Sales	$22,900	Assets	$118,000	Debt	$39,600
Costs	15,800			Equity	78,400
Taxable income	$7,100	Total	$118,000	Total	$118,000
Taxes (35%)	2,485
Net income	$4,615

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,510 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?

Multiple Choice

• $15,391

• $21,480

• $198,825

• $17,827

• $16,609