Answer:
-$134.88
Explanation:
Calculation for the external financing need
First step is to calculate the Projected total assets
Projected total assets = 1.05 × $203,000
Projected total assets = $213,150
Second step is to calculate Projected current liabilities
Projected current liabilities = 1.05 × $36,700
Projected current liabilities = $38,535
Third step is to calculate Current stockholders' equity
Current stockholders' equity = $203,000 - $36,700 - $78,400
Current stockholders' equity= $87,900
Fourth step is to calculate Projected shareholders equity
Projected shareholders equity = $87,900 + (1.05 × $185,000 × 0.058 × (1 - 0.25))
Projected shareholders equity = $96,349.88
Now let calculate the external financing need
External financing need = $213,150 - $38,535 - $78,400 - $96,349.88
External financing need= -$134.88
Therefore External financing need will be -$134.88
