Suppose that Wall-E Corporation currently has the balance sheet shown below, and that sales for the...
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Suppose that Wall-E Corporation currently has the balance sheet shown below, and that sales for the year just ended were $6.1 million. The firm also has a profit margin of 20 percent and a retention ratio of 25 percent and expects sales of $8.1 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 Fixed assets $ 1,769,000 4,087,000 Current liabilities $ 1,708,000 Long-term debt Equity 1,950,000 2,198,000 Total assets $ 5,856,000 Total liabilities and equity $ 5,856,000 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? Note: Enter your answer in dollars not in millions. Round your answer to the nearest whole dollar. Additional funds needed Suppose that Wall-E Corporation currently has the balance sheet shown below, and that sales for the year just ended were $6.1 million. The firm also has a profit margin of 20 percent and a retention ratio of 25 percent and expects sales of $8.1 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 Fixed assets $ 1,769,000 4,087,000 Current liabilities $ 1,708,000 Long-term debt Equity 1,950,000 2,198,000 Total assets $ 5,856,000 Total liabilities and equity $ 5,856,000 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? Note: Enter your answer in dollars not in millions. Round your answer to the nearest whole dollar. Additional funds needed
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