What amount of additional funds will Wind Em need

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Question - 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 percent, a retention ratio of 20 percent, and expects sales of $7.9 million next year.

Assets Liabilities and Equity Current assets $1,931,000 

Current liabilities $2,390,850

Fixed assets 4,900,000 

Long-term debt 1,550,000

Equity 2,890,150

Total assets $6,831,000 

Total liabilities and 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?

Reference no: EM132539033

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