Given the assumptions, what is the External Financing Need (EFN)?

Revenue $200,000 

Cost of Goods Sold 120,000 

Gross Profit 80,000 

Operating Expenses 30,000 

Operating Income 50,000 

Interest Expense 10,000 

Earnings before tax 40,000 

Income tax expense (30%) 12,000 

Net Income 28,000 

Cash (min desired balance) 20,000 

Accounts Receivable 40,000 

Inventory 30,000 

Property, Plant, & Equipment, net 150,000 

Total Assets $240,000 

Accounts payable 20,000 

Long-term debt 120,000 

Common Stock 40,000 

Retained earnings 60,000 

Total Liabilities and equity $240,000 

Assumptions: Sales increase: 36% 

Net Capex: $45,000 

Operating margin: 30% 

Interest expense: no change 

Retention ratio: 40%