The most recent financial statements for GPS, Inc., are shown here:

The most recent financial statements for GPS, Inc., are shown here:

  Income StatementBalance Sheet  Sales$23,000    Assets$121,000    Debt$47,600    Costs15,600  

    Equity73,400    Taxable income$7,400      Total$121,000  

    Total$121,000  

  Taxes (40%)2,960          Net income$4,440  

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,500 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,100.

Required:What is the external financing needed?

rev: 09_17_2012