What is the external financing needed?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 3-8 Calculating EFN

The most recent financial statements for Hu, Incorporated, are shown here (assuming no income taxes):

 

Income Statement Balance Sheet
Sales $ 9,600 Assets 16,000 Debt $ 4,000
Costs 7,470     Equity 12,000
           
Net income $ 2,130 Total 16,000 Total $ 16,000
           

 

Assets and costs are proportional to sales; debt and equity are not. No dividends are paid. Next year’s sales are projected to be $11,904.

 

What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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