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A firm's internal financial planners forecast a 5% sales increase next year. Current sales are $500 million. Total operating assets in the current period are

A firm's internal financial planners forecast a 5% sales increase next year. Current sales are $500 million. Total operating assets in the current period are $1,000 million. The firm has $200 million of non-operating assets, $100 million of accruals, and $100 million of accounts payable in the current period. Its profit margin is 10% and its payout ratio is 60%, both of which are expected to remain stable. Under the current forecast, how much in additional funds is needed to achieve the 5% sales growth rate?

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