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Urban's, which is currently not operating at full capacity, has sales of S47,000, current assets of S5,100, current liabilities of $6,200, net fixed assets of

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Urban's, which is currently not operating at full capacity, has sales of S47,000, current assets of S5,100, current liabilities of $6,200, net fixed assets of S51,500, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. No new equity will be issued. The firm does not pay any dividends. Sales are expected to increase by 3 percent next year. The following items vary directly with sales - current assets and short-term liabilities. The profit margin percentage remains constant. How much is the external financing needed (EFN) to balance the projected Balance Sheet for next year? (HINT: First prepare the original Income Statement and Balance Sheet. Then project the Income Statement at the sales increase of 3%. Then project the Balance Sheet. Show the original and projected financial statements on the worksheet provided.)

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