4-1 Additional Funds Needed 1. Calculate the additional funds needed. X A FILE Additional Funds Needed - Excel ? - HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In * Arial 4 12 % Ba Paste Clipboard BIU Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Font F fx Styles Suppose that Gyp Sum Industries currently has the balance sheet shown below, C4 AB 1 2 3 D E F G H 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, a retention ratio of 20 percent, and expects sales of $8.2 million next year. Assets Liabilities and Equity Current assets $ 2,124,000 4,200,000 Fixed assets Current liabilities $ 1,707,480 Long-term debt Equity 1,600,000 3,016,520 A B E F G H 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, a retention ratio of 20 percent, and expects sales of $8.2 million next year. Assets Liabilities and Equity Current assets $ 2,124,000 Current liabilities Fixed assets 4,200,000 Long-term debt $ 1,707,480 1,600,000 Equity 3,016,520 Total assets $ 6,324,000 Total liabilities and equity $ 6,324,000 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? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.) 5 6 7 Sales last year $ 10,200,000 8 Profit margin 30% 9 Retention ratio 20% 10 Sales next year $ 8,200,000 11 Assets $ 12 Current liabilities $ SA 6,324,000 1,707,480 READY Attempt(s) Sheet1 | 100% Hint A B D E F G T 6 7 Sales last year $ 8 Profit margin 10,200,000 30% 9 Retention ratio 20% 10 Sales next year $ 8,200,000 1 Assets $ 6,324,000 2 Current liabilities $ 1,707,480 13 4 15 6 7 18 9 Complete the following analysis. Do not hard code values in your calculations, and do not round intermediate calculations. Necessary increase in assets 20 Spontaneous increase in liabilities 1 Projected increase in retained earnings 22 Additional Funds Needed 23 4 25 26 READY Attempt(s) Sheet1 B + 100% Hint