The CEO of Easy Home Sales Inc. would like to grow the company to $952,000 in sales for next year. The finance officer has compiled the data below for the current year. Assets and costs will grow propotionate to sales; debt and equity will not. The dividend pay out ratio will be the same as current year. what is the external financing needed?
current year data
sales $800,000
costs 600,000
tax rate 35%
assets 2,000,000
debt 800,000
equity 1,200,000
dividends 26,000