Problem $15-3$ Additional Funds Needed $($LG$15-4)$

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $$9\mathrm{.}5$

million. The firm also has a profit margin of $25$ percent and a retention ratio of $30$ percent, and expects sales of $$7\mathrm{.}5$ million next year.

If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external

sources to fund the expected growth?

Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.