Find what amount of additional funds will wind em need

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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 $7.2 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $8.2 million next year.

Assets Liabilities and Equity

Current assets$2,144,000

Current liabilities$2,717,280

Fixed assets 5,200,000

Long-term debt 1,600,000

Equity 3,026,720

Total assets$7,344,000

Total liabilities and equity$7,344,000

Question 1: 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?

Reference no: EM132530633

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