Problem 18-18 Required External Financing (LO3)

Here are the abbreviated financial statements for Planners Peanuts:

INCOME STATEMENT, 2019
Sales	$	11,000
Cost		8,700
Net income	$	2,300

BALANCE SHEET, YEAR-END
		2018				2019						2018				2019
Assets		$	10,500			$	11,000			Debt		$	853			$	1,000
										Equity			9,647				10,000
Total		$	10,500			$	11,000			Total		$	10,500			$	11,000

Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2020 of (a) 25%, (b) 30%, and (c) 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

		External Financing Need
(a)	25%
(b)	30%
(c)	35%