The most recent financial statements for Retro Machine, Inc., follow. Sales for 2014 are projected to grow by 25 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 Costs Other expenses $744,000 579,000 15,000 Earnings before interest and taxes Interest paid $ 150,000 11,000 Taxable income Taxes (20%) $ 139,000 27,800 Net income $ 111,200 $22,240 Dividends Addition to retained earnings 88,960 artnoir C RETRO MACHINE, INC. Balance Sheet as of December 31, 2013 Assets Current assets Cash Accounts receivable $ 20,340 32,660 Liabilities and Owners' Equity Current liabilities Accounts payable $ 54,500 Notes payable 13,700 Inventory 69,620 Total $ 68,200 $ 122,620 $ 127,000 Total Fixed assets Net plant and equipment $420,000 Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 113,000 234,420 Total $ 347,420 Total assets $542,620 Total liabilities and owners' equity $542,620 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 (20%) Net income $ Pro Forma Balance Sheet Assets Current assets Cash Accounts receivable Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable $ Inventory Total $ $ $ Total Fixed assets Long-term debt Owners' equity Pro Forma Balance Sheet Assets Current assets Cash Accounts receivable Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable $ Inventory Total $ $ Total Fixed assets Net plant and equipment Long-term debt Owners' equity 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 25 percent growth rate in sales? (Do not round intermediate calculations.) EFN