The most recent financial statements for Reply, Inc., are shown here:
| Income Statement |
|
Balance Sheet |
|
| Sales |
$ |
26,500 |
|
Assets |
$ |
60,100 |
|
Debt |
$ |
27,500 |
|
| Costs |
|
18,200 |
|
|
|
|
|
Equity |
|
32,600 |
|
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| Taxable income |
$ |
8,300 |
|
Total |
$ |
60,100 |
|
Total |
$ |
60,100 |
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| Taxes (40%) |
|
3,320 |
|
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| Net income |
$ |
4,980 |
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Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,800 was paid, and the company wishes to maintain a constant payout ratio. Next yearAc€?cs sales are projected to be $30,475.
What is the external financing needed? (Do not round intermediate calculations.)