The most recent financial statements for Retro Machine, Inc., follow. Sales for 2014 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.

RETRO MACHINE, INC. 2013 Income Statement
Sales				$	760,000
Costs					595,000
Other expenses					16,000
Earnings before interest and taxes				$	149,000
Interest paid					17,000
Taxable income				$	132,000
Taxes (30%)					39,600
Net income				$	92,400
Dividends	$	18,480
Addition to retained earnings		73,920

RETRO MACHINE, INC. Balance Sheet as of December 31, 2013
Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$	21,940		Accounts payable	$	56,100
Accounts receivable		34,260		Notes payable		15,300
Inventory		71,220		Total	$	71,400
Total	$	127,420		Long-term debt	$	143,000
Fixed assets				Owners equity
Net plant and equipment	$	420,000		Common stock and paid-in surplus	$	129,000
				Accumulated retained earnings		204,020
				Total	$	333,020
Total assets	$	547,420		Total liabilities and owners equity	$	547,420

The firm is operating at full capacity and no new debt or equity is issued. Calculate the pro forma income statement and balance sheet for the company. (Do not round intermediate calculations.)

Pro Forma Income Statement
Sales	$
Costs
Other expenses
EBIT	$
Interest
Taxable income	$
Taxes (30%)
Net income	$

Pro Forma Balance Sheet
Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$			Accounts payable	$
Accounts receivable				Notes payable
Inventory				Total	$
Total	$			Long-term debt	$
Fixed assets				Owners equity
Net plant and equipment	$			Common stock and paid-in surplus	$
				Accumulated retained earnings
				Total	$
Total assets	$			Total liabilities and owners equity	$

What external financing is needed to support the 20 percent growth rate in sales? (Do not round intermediate calculations.)

EFN

$