correct answer

The most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. RETRO MACHINE, INC. 2020 Income Statement Sales $ 751,000 Costs 586,000 Other expenses 22,000 Earnings before interest and taxes Interest paid $ 143,000 18,000 Taxable income Taxes (23%) $ 125,000 28,750 Net income $ 96,250 Dividends Addition to retained earnings $29,838 66,412 RETRO MACHINE, INC. Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,040 Accounts payable $ 55,200 Accounts receivable 43,980 Notes payable 14,400 Inventory 95,960 Total $ 69,600 Total Fixed assets Net plant and equipment $160,980 Long-term debt $134,000 Owners' equity Common stock and paid-in $ 116,500 $427,000 surplus Retained earnings 267,880 Total $384,380 Total assets $587,980 Total liabilities and owners' equity $587,980 If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations.) EFN