Tobin Supplies Company expects sales next year to be $$500,000.$ Inventory and accounts receivable will increase $$90,000$ to accommodate this sales level. The company has a steady profit margin of $12$ percent with a $40$ percent dividend payout.

How much external financing will Tobin Supplies Company have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.

External funds needed