Reference no: EM131986920

The 2017 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2017 Sales $ 360,000 Costs 230,000 EBIT $ 130,000 Interest expense 26,000 Taxable income $ 104,000 Taxes (at 35%) 36,400 Net income $ 67,600 Dividends $ 33,800 Addition to retained earnings 33,800 BALANCE SHEET, YEAR-END, 2017 Assets Liabilities Current assets Current liabilities Cash $ 5,000 Accounts payable $ 12,000 Accounts receivable 10,000 Total current liabilities $ 12,000 Inventories 35,000 Long-term debt 260,000 Total current assets $ 50,000 Stockholders’ equity Net plant and equipment 300,000 Common stock plus additional paid-in capital 15,000 Retained earnings 63,000 Total assets $ 350,000 Total liabilities and stockholders' equity $ 350,000 Sales and costs are projected to grow at 30% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at 75% capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of long-term debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 0.50. What is the required external financing over the next year? (Negative amounts should be indicated by a minus sign.)