The most recent financial statements for Summer Tyme, Inc., are shown here:
Income Statement Balance Sheet
Sales $3,700 Current assets $4,500 Current liabilities $960 Costs 2,400 Fixed assets 5,200 Long-term debt 3,620 Taxable income $1,300 Equity 5,120 Taxes (21%) 273 Total $9,700 Total $9,700 Net income $1,027
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 30 percent.
Required:
What is the external financing needed? (Do not round your intermediate calculations.)
EFN = needed new long-term debt and/or external equity

Note: See the attached excel file for the Calculation of ratios with respect to sales, Proforma Income Statement, Calculation of Retained Earnings and Equity, and Proforma Balance Sheet.

From the Proforma Balance Sheet in the attached excel file, we have:

Total Assets = $12,610

Total Liabilities = $10,448

Therefore, we have:

External finance needed = Total Assets - Total Liabilities = = $12,610 - $10,448 = $2,088