The Paper Mill is operating at full capacity. Assets, costs, and current liabilities vary directly with sales. The dividend payout ratio is constant. The firm has sales of $42,700, net income of $5,500, total assets of $48,900, current liabilities of $3,650, long-term debt of $18,100, owners' equity of $27,150, and dividends of $1,925.

What is the external financing need if sales increase by 14 percent?

Multiple Choice $1,816 $1,268 $1,031 $3,504 $2,260