Calculating EFN the most recent financial statements for Moose Tours, inc., follow. Sales for 2007 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs other expenses current assets and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales?

MOOSE TOURS, INC. 2006 Income Statement Sales $845,000 Costs 657,000 Other expenset. 17,500 $170,500 Earnings before interest and taxes 12,500 $158,000 Interest paid Taxabie income Taxes (35%) 55,300 $102,700 Net income Dividends $30,810 Addition to retained earnings 71,890 MOOSE TOURS, INC. Balarice Sheet as of December 31, 2008 Assets Lleblities end Ownere' Equlty. Current assets Current liablities $ 23,000 Cash $ 62,000 15,000 $ 77,000 Accounts payable 37,000 Accounts recalvable Notes payable Inventory Total 79.000 Total $139,000 $144,000 Long-term debt Fixed assets Owners' equity Common stock and paid-in surplus Net piant and equipment $100,000 $375,000 Retained earnings 193,000 Total $293,000 $514,000 $514,000 Total liabilities and owners' equity Total assets