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External financing _____________

The 2017 financial statements for Growth Industries are presented below. INCOME STATEMENT, 281 Sales Costs EBIT Interest expense Taxable income Taxes (at 35%) Net income $ 380,808 248,8ee s 148,808 28,808 $ 112,808 $ 72,800 Dividends Addition to retained earnings 21,848 58,968 BALANCE SHEET, YEAR-END, 2817 Liabilities Asset Current liabilities Current assetS Cash Accounts receivable Inventories $7,8e8 Accounts payable Total current liabilities 14,808 14,80e 288,eee 12,800 31,8 Long-term Total current assets $ 58,8e Stockholders' equity Net plant and equipment Common stock plus additional paid-in capital Retained earnings 329 , 15,8ee 61,808 370,808 $ 370,e08 Total assets Total 1iabilities and stockholders' equity Sales and costs are projected to grow at 20% 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 0.30. What is the required external financing over the next year? (Enter excess cash as a negetlve number with a mlnus slgn.)

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