Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.2million. The firm also has a profit margin of 30 percent and a retention ratio of 20 percent, and expects sales of $8.2 million next year.AssetsCurrent assetsFixed assetsTotal assets$ 2,124,0004,200,000$ 6,324,000Liabilities and EquityCurrent liabilitiesLong-term debtEquityTotal liabilities and equityAdditional funds needed $If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from externalsources to fund the expected growth?Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.Answer is complete but not entirely correct.1,397,200 x$ 1,707,4801,600,0003,016,520$ 6,324,000

When the revenue earned by the company is expected to be lesser than the current value, it is…

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.2 million. The firm also has a profit margin of 30 percent and a retention ratio of 20 percent, and expects sales of $8.2 million next year. Assets Current assets Fixed assets Total assets $ 2,124,000 4,200,000 $ 6,324,000 Liabilities and Equity Current liabilities Long-term debt Additional funds needed $ Equity Total liabilities and equity 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. Answer is complete but not entirely correct. 1,397,200 x $ 1,707,480 1,600,000 3,016,520 $ 6,324,000

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.2 million. The firm also has a profit margin of 30 percent and a retention ratio of 20 percent, and expects sales of $8.2 million next year. Assets Current assets Fixed assets Total assets $ 2,124,000 4,200,000 $ 6,324,000 Liabilities and Equity Current liabilities Long-term debt Additional funds needed $ Equity Total liabilities and equity 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. Answer is complete but not entirely correct. 1,397,200 x $ 1,707,480 1,600,000 3,016,520 $ 6,324,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 10P

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