Vijay Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $5.6million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year.Liabilities and EquityAssetsCurrent assetsFixed assetsTotal assets$ 2,576,000 Current liabilities4,300,000Long-term debt$ 6,876,000Additional funds neededEquityTotal liabilities and equity$ 2,016,0001,800,0003,060,000$ 6,876,000If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increasewith 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.

The amount that is to be raised from outside sources such as availing loan, bank overdraft, issue of…

Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $5.6 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year. Assets Current assets. Fixed assets Total assets Liabilities and Equity Additional funds needed $ 2,576,000 Current liabilities 4,300,000 Long-term debt Equity $ 6,876,000 Total liabilities and equity $ 2,016,000 1,800,000 3,060,000 $ 6,876,000 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.

Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $5.6 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year. Assets Current assets. Fixed assets Total assets Liabilities and Equity Additional funds needed $ 2,576,000 Current liabilities 4,300,000 Long-term debt Equity $ 6,876,000 Total liabilities and equity $ 2,016,000 1,800,000 3,060,000 $ 6,876,000 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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 6P

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