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

Income Statement

Balance Sheet

Sales

$27,500

Assets

$105,000

Debt

$43,000

Costs

19,450

Equity

62,000

Taxable income

$8,050

Total

$105,000

Total

$105,000

Taxes (34%)

2,737

Net income

$5,313

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,050 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $31,000. What is the external financing needed?