Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales...
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Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $8.4 million next year. Assets Current assets Fixed assets Total assets $2,256,000 4,400,000 Additional funds needed Liabilities and Equity Current liabilities Long-term debt Equity $6,656,000 Total liabilities and equity $1,930,240 1,700,000 3,025,760 $6,656,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.)
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