Using Percentage of Sales. The $2015$ financial statements for Growth Industries are presented below. Sales and costs in

$2016$ are projected to be $20\%$ higher than in $2015.$ Both current assets and accounts payable are projected to rise in

proportion to sales. The firm is currently operating at full capacity, so it plans to increase fixed assets in proportion to sales.

What external financing will be required by the firm? Interest expense in $2016$ will equal $10\%$ of long$-$term debt

outstanding at the start of the year. The firm will maintain a dividend payout ratio of $\mathrm{.}40.$