External sources to fund expected growth

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Reference no: EM131918171

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.8 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $8.8 million next year. ASSETS LIABILITY AND EQUITY Current assests 2,544,000 Current Liabilities 2,423,520 Fixed assets 4,800,000 Long-term debt 1,900,000 Total Assets 7,344,000 Equity 3,020,000 Total Liabilities and equity $7,344,000 If all the assets and current labilities are expected to shrink with sales, what amount of additional funds ill Gyp Sum Industries nee from external sources to fund the expected growth. ( Enter answer n dollars ot million. Negative amount should be indicted by a minus sign). What are the additional funds needed.

Reference no: EM131918171

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