The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes):

Income Statement		Balance Sheet
Sales	$4,800	Assets	$14,600	Debt	$10,500
Costs	3,470			Equity	4,100
Net income	$1,330	Total	$14,600	Total	$14,600

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,967.

What is the external financing needed?

Answer rating: 100% (QA)

To determine the external financing needed for the next year we need to calculate the increase in as... View the full answer