What is external financing needed

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

Income Statement

Sales $ 28,000

Costs 19,000

--------------------

Taxable income $ 9,000

Taxes (40%) 3,600

Net income $ 5,400

Balance Sheet

Assets $ 61,900 Debt $ 27,700

Equity 34,200

Total $ 61,900 Total $ 61,900

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $32,480.

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

External financing needed $__________

Reference no: EM131958923

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