Question: I am including the correct answer to the following problem. However, doing the work I cannot get the same answer. I am off just by

I am including the correct answer to the following problem. However, doing the work I cannot get the same answer. I am off just by a couple decimal points but I still cannot find the error in my work. I would really appreciate it if someone can get the same answer and show me the process. Thank you in advance!

Consider the following recent financials for a Corporation:

Income Statement

Balance Sheet

Sales

72,429

Assets

178,884

Debt

44,955

Costs

43,457

Equity

133,929

EBIT

28,972

Taxes @ 38%

11,009

Total

178,884

Total

178,884

Net Income

17,963

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,577 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to grow by 24%.

What is the external financing needed using the pro-forma approach?

23,853.90

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