Answer:
$2,260
Explanation:
The computation is shown below:
Present sales revenue	$42,700
Expected sales revenue ($42,700 × 114 ÷ 100)	$48,678
Current profit margin ($5,500 ÷ $42,700 × 100)	12.88%
Payout Ratio:  
Dividends (a)	$1,925
Net Income (b)	$5,500
Payout Ratio (a ÷ b × 100)	35%
Retention Ratio (100% - 35%)	65%
due to 14% rise in sales Increase in retained earnings  ($48,678 × 12.88 ÷ 100 × 65 ÷ 100)	$4,075.32
due to 14% rise in sales, Increase in assets  ([$48,678 - $42,700] × $48,900 ÷ $42,700)	$6,846
due to 14% rise in sales, Increase in liabilities  ([$48,678 - $42,700] ×  $3,650 ÷ $42,700)	$511
 when sales rise by 14% External Financing Needed ($6,846 - $4,075.32 - $511)	$2,260