The most recent Financial Information for Golf Pro Inc. are shown here:
Income Statement Balance Sheet
Sales $3,400 Current Assets $4,400 Current Liabilities $880
Costs 2,800 Fixed Assets 5,700 Long Term Debt 3,580
Taxable Income 600 Equity 5,640
Taxes @ 34% 204 Total 10,100 Total $10,100
Net Income $ 396
Assets, costs and current Liabilities are proportional to sales. Long –term Debt and equity are not. The company maintains a constant 50% dividend payout ratio. As with every other firm in its industry, the next year’s sales are projected to increase by exactly 15%. What is the external financing needed?