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In: Accounting

The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales 26,000 Costs...

The most recent financial statements for Martin, Inc., are shown here:

Income Statement
Sales 26,000
Costs -15,600
Taxable income 10,400
Taxes(34%) -3,536
Net income 6,864
Balance Sheet
Assets $98,800.00 Debt $45,000.00
Equity 53,800
Total $ 98,800.00 Total $98,800.00

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,075 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $31,200. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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