Suppose Super Fun Toys Inc., has sales of $8.9 million for the year just ended, the profit margin of the firm is 16% with a retention rate of 28%, and the firm expects sales of $9.8 million next year. If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Super Fun Toys Inc. need from external sources to fund the expected growth?
|Assets||Liabilities and Equity|
|Current Assets||$3,500,000||Current liabilities||$2,400,000|
|Fixed Assets||$5,100,000||Long-term debt||$2,100,000|
|Total assets||$8,600,000||Total liabilities and equity||$8,600,000|