Problem 4-24 Calculating EFN (LO2] The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. CROSBY, INC. 2017 Income Statement Sales Costs Other expenses $744,000 579,000 15,000 Earnings before interest and taxes Interest paid $ 150,000 11,000 Taxable income Taxes (21%) $ 139,000 29,190 Net income $ 109,810 Dividends Addition to retained earnings $32,943 76,867 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash 20,340 Accounts payable $ 54,500 Accounts receivable 43,280 Notes payable 13,700 Inventory 88,960 Total $ 68,200 Total $ 152,580 Long-term debt $ 127,000 Fixed assets Net plant and equipment $420,000 Owners' equity Common stock and paid-in $ 113,000 surplus Retained earnings 264,380 Total $ 377,380 Total assets $572, Total liabilities and owners' equity $572,580 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? (Do not round intermediate calculations.) EFN 1