The most recent financial statements for Retro Machine, Inc., follow. Sales for 2010 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. If the firm is operating at full capacity and no new debt or equity are issued, what is the external financing needed to support the 20 percent growth rate in sales?

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RETRO MACHINE IN 2009 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (35%) Net income S929,000 723,000 19,000 $187,000 14,000 S173,000 60,550 $112 450 S 33,735 78,715 Dividends Addition to retained earnings RETRO MACHINE, INC Balance Sheet as of December 31, 2009 ASSETS LIABILITIES AND OWNERS EQUITY Current assets Current liabilities Cash Accounts receivable Inventory S 25,300 40,700 86,900 $152,900 S 68,000 17,000 S 85,000 $158,000 Accounts payable Notes payable Total Long-term debt Owners equity Total Fixed assets $140,000 182,900 $322,900 $565,900 Net plant and equipment $413,000 Common stock and paid-in surplus Accumulated retained earnings Total Total assets Total liabilities and owners' equity