Fishing$$ Charter, Inc. estimates that it invests

$2828$

cents in assets for each dollar of new sales. $$ However,

$55$

cents in profits are produced by each dollar of additional$$ sales, of which

$11$

$$cent$($s$)$ can be reinvested in the firm. If sales rise by

$$$$497$ comma $000497,000$

next year from their current level of

$$$$5\mathrm{.}355\mathrm{.}35$

$$million$,$ and the ratio of spontaneous liabilities to sales is

$0\mathrm{.}170\mathrm{.}17,$

what will be the$$ firm's need for discretionary$$ financing?$$

$($Hint$$:

In this situation you do not know what the$$ firm's existing level of assets$$ is$,$ nor do you know how those assets have been financed. $$ Thus, you must estimate the change in financing needs and match this change with the expected changes in spontaneous$$ liabilities, retained$$ earnings, and other sources of discretionary$$ financing.$)$