A Firm Has the Following Account Balances for This Year

A firm has the following account balances for this year. Sales for the year are $420,000. Projected sales for next year are $441,000. The percentage of sales approach is used for pro forma purposes. All balance sheet accounts, except long-term debt and common stock, change according to that approach. The firm plans to decrease the long-term debt balance by $23,500 next year. Retained earnings is expected to increase by $5,400 next year. What is the projected external financing need?
$\begin{array}{lrr} \text {Current assets } &\$48,000\\ \text {Net fixed assets } &\$270,000\\ \text {Current liabilities } \$56,000&\\ \text {Long-term debt } &\$154,000\\ \text { Common stock } &\$50,000\\ \text { Retained earnings } &\$91,000\\\end{array}$

A) $14,150
B) $26,850
C) $32,850
D) $36,000
E) $56,350