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If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations.)

The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. CROSBY, INC 2017 Income Statement $748,000 583,000 19,000 Sales Costs Other expenses Earnings before interest and taxes $146,000 Interest paid 15,000 $ 131,000 32,750 Taxable income Taxes (25%) 98,250 Net income $29,475 Dividends Addition to retained 68,775 earnings CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Current assets Liabilities and Owners' Equity Current liabilities $ 20,740 43,680 $54,900 14,100 Accounts payable Notes payable Cash Accounts receivable 69,000 Inventory 92,960 Total $157,380 $131,000 Total Long-term debt Owners' equity Common stock and paid-in $115.000 Fixed assets Net plant and equipment $424,000 surplus Retained earnings 266,380 $381,380 Total Total liabilities and owners' $581,380 eguity Total assets 581,380 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations.) $ 95,262 EFN

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