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(Financial forecasting-discretionary financing needs) J. T. Jarmon, Inc. has been in business for only 1...

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Finance

(Financial forecasting-discretionary financing needs) J. T. Jarmon, Inc. has been in business for only 1 year, and the CFO expects that the relationship
between firm sales and its operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales.
Last year, Jarmon had $12 million in sales and net income of $1.20 million. The firm anticipates that next year's sales will reach $15.000 million, with net
income rising to $1.32 million. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments.
The firm's balance sheet for 2018 is found in the popup window: . Using the information provided, make an estimate of Jarmon's financing requirements
or total assets for 2019 and its discretionary financing needs (DFN).
What are Jarmon's financing requirements or total assets for 2019?
$ (Round to the nearest dollar.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet)
J. T. Jarmon, Inc.
?3 Not applicable. This figure does not vary directly with sales and is assumed to remain constant for
purposes of making next year's forcast of financing requirements.
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