Problem 3-21 Calculating EFN The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales Costs Other expenses $760,000 595,000 31,000 $ 134,000 27,000 Earnings before interest and taxes Interest expense Taxable income Taxes (22%) Net Income $ 107,000 23,540 $ 83,460 Dividends Addition to retained earnings $25,038 58,422 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Llabilities and Owners' Equity Current assets Current liabilities Cash $ 21,940 Accounts payable $ 56,100 Accounts receivable 44,880 Notes payable 15,300 Inventory 104,960 Total $ 71,400 Total $ 171,780 Long-term debt $ 143,000 Fixed assets Net plant and equipment $436,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 121,000 272,380 Total $393,380 Total assets $ 607,780 Total liabilities and owners' equity $ 607,780 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations.) EFN