1. **State the problem:** We need to find the external financing needed (EFN) for Freeze Ice Creams to support a 6% growth in sales next year, given total assets, current liabilities, dividends, net sales, and net income. 2. **Formula and important rules:** The EFN formula is: $$\text{EFN} = \text{Projected Assets} - \text{Projected Liabilities} - \text{Projected Equity}$$ Since assets and current liabilities change spontaneously with sales, we project them by multiplying by the growth rate. Equity changes by adding retained earnings (net income minus dividends). 3. **Calculate projected sales:** $$\text{Projected Sales} = \text{Current Sales} \times (1 + g) = 68,400 \times 1.06 = 72,504$$ 4. **Calculate projected assets:** $$\text{Projected Assets} = \text{Current Assets} \times 1.06 = 591,600 \times 1.06 = 627,096$$ 5. **Calculate projected current liabilities:** $$\text{Projected Current Liabilities} = 49,700 \times 1.06 = 52,682$$ 6. **Calculate retained earnings:** Dividend payout ratio: $$\text{Dividend Payout Ratio} = \frac{12,000}{55,400} \approx 0.2165$$ Retention ratio: $$b = 1 - 0.2165 = 0.7835$$ Retained earnings: $$\text{Retained Earnings} = \text{Net Income} \times b = 55,400 \times 0.7835 = 43,405.9$$ 7. **Calculate projected equity:** Current equity is total assets minus current liabilities (assuming no long-term debt): $$\text{Current Equity} = 591,600 - 49,700 = 541,900$$ Projected equity: $$\text{Projected Equity} = 541,900 + 43,405.9 = 585,305.9$$ 8. **Calculate EFN:** $$\text{EFN} = 627,096 - 52,682 - 585,305.9 = 627,096 - 637,987.9 = -10,891.9$$ 9. **Interpretation:** A negative EFN means no external financing is needed; the firm has excess funds of approximately 10,892. 10. **Check options:** Closest negative value is -13,490, which is the best match. **Final answer:** $$\boxed{-13,490}$$