The most recent financial information for Golf Pro Inc. are shown here:
Income Statement
Sales $3,400
Costs 2,800
Taxable Income 600
Taxes @ 34% 204
Net Income $ 396
Balance Sheet
Current Assets $4,400 Current Liabilities $880
Fixed Assets 5,700 Long Term Debt 3,580
Equity 5,640
Total 10,100 Total $10,100
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?