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Item21

Item 21 3 points

The most recent financial statements for Martin, Inc., are shown here:

Income Statement
Sales	$	20,500
Costs		(12,300	)
Taxable income	$	8,200
Taxes(40%)		(3,280	)
Net income	$	4,920

Balance Sheet
Assets	$	77,900		Debt	$	33,000
				Equity		44,900
Total	$	77,900		Total	$	77,900

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $865 was paid, and Martin wishes to maintain a constant payout ratio. Next years sales are projected to be $23,780. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

EFN