The 2017 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2017 Sales $ 400,000 Costs 250,000 EBIT $ 150,000 Interest expense 30,000 Taxable income $ 120,000 Taxes (at 35%) 42,000 Net income $ 78,000 Dividends $ 39,000 Addition to retained earnings 39,000 BALANCE SHEET, YEAR-END, 2017 Assets Liabilities Current assets Current liabilities Cash $ 9,000 Accounts payable $ 16,000 Accounts receivable 14,000 Total current liabilities $ 16,000 Inventories 27,000 Long-term debt 300,000 Total current assets $ 50,000 Stockholders’ equity Net plant and equipment 340,000 Common stock plus additional paid-in capital 15,000 Retained earnings 59,000 Total assets $ 390,000 Total liabilities and stockholders' equity $ 390,000 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 0.50. What is the required external financing over the next year?