Last year, sales for the Peter Piper Pickle Company were $6 million. The firm is operating at full capacity. The ratios for several balance sheet items and income statement items relative to sales were calculated as follows.
Cash= 2%
Accounts Receivable= 10%
Inventory= 15%
Net Fixed Assets= 40%
Accounts Payable= 15%
Notes Payable= 15%
Other Accruals= 5%
Net Income= 9%
The firm wishes to maintain its 35% payout ratio. If sales were to increase 20%, what would the Additional Funds Needed be?
$142.8 million
-$37.2 million
-$337.2 million
$250.8 million