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

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $850 was paid, and Martin wishes to maintain a constant payout ratio. Next years sales are projected to be $31,625. What is the external financing needed?

Assets Income Statement Sales $27,500 Costs |(19,450) Taxable income $ 8,050 Taxes (34%) (2,737) Net income $ 5,313 Balance Sheet $105,000 Debt Equity $105,000 Total $ 43,000 62,000 $105,000 Total