How much additional financing is required

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A firm has $40 million in sales last year. Its asset to sales ratio is .4 and its net profit margin of .07. The firm plans to maintain its current retention ratio is .6; its payables amount to $400,000 million, and it does not have any bank loans as notes payable. If 20% increase in sales is anticipated, how much additional financing is required?

Reference no: EM131949901

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