Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.2 million.
The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $9.2 million next year.
Fixed assets are currently fully utilized, and the nature of Wall-E's fixed assets is such that they must be added in $1 million increments.
Assets Liabilities and Equity Current assets $ 2,088,000
Current liabilities $ 2,448,000
Fixed assets 5,112,000
Long-term debt 1,600,000
Equity 3,152,000
Total assets $ 7,200,000
Total liabilities and equity $ 7,200,000
If current assets and current liabilities are expected to grow with sales, what amount of additional funds will Wall-E need from external sources to fund the expected growth?
(Enter your answer in dollars not in millions.) Additional funds needed $