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The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet Sales $4,300 Current assets $5,000 Current liabilities $900 Costs

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

Income Statement Balance Sheet
Sales $4,300 Current assets $5,000 Current liabilities $900
Costs

2,100

Fixed assets 5,600 Long-term debt 3,630
Taxable income $2,200 Equity 6,070
Taxes (30%) 660 Total

$10,600

Total

$10,600

Net income

$1,540

Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent.

Required:

What is the external financing needed?

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