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The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 390,000...

The 2019 financial statements for Growth Industries are presented below.

INCOME STATEMENT, 2019
Sales $ 390,000
Costs 245,000
EBIT $ 145,000
Interest expense 29,000
Taxable income $ 116,000
Taxes (at 21%) 24,360
Net income $ 91,640
Dividends $ 36,656
Addition to retained earnings $ 54,984

  

BALANCE SHEET, YEAR-END, 2019
Assets Liabilities
Current assets Current liabilities
Cash $ 8,000 Accounts payable $ 15,000
Accounts receivable 13,000 Total current liabilities $ 15,000
Inventories 29,000 Long-term debt 290,000
Total current assets $ 50,000 Stockholders’ equity
Net plant and equipment 330,000 Common stock plus additional paid-in capital 15,000
Retained earnings 60,000
Total assets $ 380,000 Total liabilities plus stockholders' equity $ 380,000

  

Sales and costs are projected to grow at 30% 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 0.40.

What is the required external financing over the next year? (Enter excess cash as a negative number with a minus sign.)

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