The table given below summarizes the 2004 income statement and end-year balance sheet of Santhosh's Bowling Alleys. Santhoshs financial manager forecasts a 10% increase in sales and costs in 2005. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year.

Income Statement
$ in thousands
Sales	$ 1,000	(40% of average assets)a
Costs	750	(75% of sales)
Interest	25	(5% of debt at start of year)b
Pretax profit	225
Tax	90	(40% of pretax profit)
Net income	$ 135

^aAssets at the end of 2003 were $2,400,000.

^bDebt at the end of 2003 was $500,000.

Balance Sheet
$ in thousands
Net assets	$ 2,600	Debt	$ 500
		Equity	2,100
Total	$ 2,600	Total	$ 2,600

What is the implied level of assets at the end of 2005?

Note: Enter your answer in dollars not in thousands.

If the company pays out 50% of net income as dividends, how much cash will Santhosh need to raise in the capital markets in 2005? Assumes debt remains constant.

Note: Enter your answer in dollars not in thousands.