The most recent financial statements for Reply, Inc., are shown here:
Income Statement
Sales $ 28,000
Costs 19,000
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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 $__________