Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.9 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 Current assets $1,960,000 Current liabilities Liabilities and Equity 3,950,000 Long-term debt 1,550,000 2,351,000 $ 2,009,000 Fixed assets Total assets $ 5,910,000 Total liabilities and equity $ 5,910,000 Equity If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. Additional funds needed

Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.9 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 Current assets $1,960,000 Current liabilities Liabilities and Equity 3,950,000 Long-term debt 1,550,000 2,351,000 $ 2,009,000 Fixed assets Total assets $ 5,910,000 Total liabilities and equity $ 5,910,000 Equity If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. Additional funds needed

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 13P: Payne Products had $1.6 million in sales revenues in the most recent year and expects sales growth...

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