ework i Saved Problem 18-15 Capacity Use and External Financing (LO2) The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 240, 090 Costs 170, 000 EBIT $ 70, 000 Interest expense 14,060 Taxable income $ 56, 090 Taxes (at 21%) 11, 760 Net income $ 44, 240 Dividends $ 22, 120 Addition to retained earnings $ 22, 120 BALANCE SHEET, YEAR-END, 2019 Assets Liabilities Current assets Current liabilities Cash $ 7,000 Accounts payable $ 14,000 Accounts receivable 12, 000 Total current liabilities $ 14,000 Inventories 21, 000 Long-term debt 140, 000 Total current assets $ 40,000 Stockholders' equity Net plant and equipment 180, 000 Common stock plus additional paid-in capital 15, 000 Retained earnings 51 , 000 Total assets Total liabilities plus stockholders equity $ 220,000 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 full 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. If Growth Industries is operating at only 75% of capacity, how much can sales grow before the firm will need to raise any external funds? Assume that once fixed assets are operating at capacity, they will need to grow thereafter in direct proportion to sales. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Final sales S 21,555