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

Income Statement Balance Sheet

Sales$4,000 Current assets$4,300 Current liabilities$970

Costs2,100 Fixed assets4,900 Long-term debt3,560

Taxable income$1,900 Equity4,670

Taxes (34%)646 Total$9,200 Total$9,200

Net income$1,254

Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent.

Required:What is the external financing needed?(Do not round your intermediate calculations.)

rev: 09_17_2012

Multiple Choice

• $893.6
• $712
• $843.6
• $943.6
• $1,087.6