Star Supermarket is evaluating its financial needs for the year 2017. The company’s CFO suggests that the relationship between sales, operating expenses, current liabilities, and total assets will remain at their current proportion of sales.

In 2016, Star had $3 million in sales and net income of $0.5 million. According to Star’s evaluation of the market and latest developments in the company’s successful sales strategy, it expects to increase sales to $4 million. Based on balance sheet from 2016, evaluate discretionary financing needs (DFN) for 2017. Balance sheet as for December 31, 2016

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Star Supermarket Current assets Net fixed assets Total Accounts payable Long-term debt Total liabilities Common stock Paid-in capital Retained earnings Common equity Total BALANCE SHEET ASSETS $410,000 1.150.000 $1,560,000 LIABILITIES AND OWNERS' EQUITY $450,000 350.000 $800,000 100,000 210,000 450,000 760.000 $1,560.000