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The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $22,600 Assets $112,000 Debt $39,600 Costs 16,400 Equity 72,400

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

Income Statement Balance Sheet
Sales $22,600 Assets $112,000 Debt $39,600
Costs

16,400

Equity 72,400
Taxable income $6,200 Total

$112,000

Total

$112,000

Taxes (35%) 2,170
Net income

$4,030

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,570 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,200.

Required:

What is the external financing needed?

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