External sources to fund the expected growth

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Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.9 million. The firm also has a profit margin of 30% , a retention ratio of 20%, and expects sales of $7.9 million next year.

Assets Liabilities & Equity

Current Assets: $1, 931, 000 Current Liabilities: $2, 390, 850

Fixed Assets: $4, 900, 000 Long-Term Debt: $1, 550, 000

Total Assets: $6, 831, 000 Equity: $2, 890, 150

Total Liabilities & Equity: $6, 831, 000

If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth? (Enter your answer in dollars not in millions, please)

Reference no: EM132541273

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