The most recent financial statements for Kerch, Incorporated, are shown here (assuming no income taxes): Income Statement Sales Costs Net income $4,600 3,420 $1,180 Assets Balance Sheet Debt Equity $ 15,500 Total $15,500 What is the external financing needed? $ 10,600 4,900 Total $15,500 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,960.

The most recent financial statements for Kerch, Incorporated, are shown here (assuming no income taxes): Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,960. What is the external financing needed