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

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $ 2,500 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $ 42,300. What external financing is needed?

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Income Statement Balance Sheet Sales Costs Taxable income $ 11,500 Total $27,000 Total $127.000 Taxes (34%) $37,300 Assets 127,000 Debt 30,500 Equity 96,500 25,800 3,910 Net income 7,590