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After adding a new line of widgets, Worldwide expects all assets and current liabilities to shrink with sales. the company has sales for the year

After adding a new line of widgets, Worldwide expects all assets and current liabilities to shrink with sales. the company has sales for the year just ended of $20 million. The company also has a profit margin of 20 percent, a return ratio of 25 percent, and expected sales of $18 million next year.

Worldwide Widgets Manufacturing, Inc., shows the following on its balance sheet:

Assets Liabilities & Equity
Current Assets $2,500,000 Current liabilites $1,250,000
Fixed Assets $3,500,000 Long-term Debt $1,500,000
Equity $3,250,000
Total Assets $6,000,000 Total Liabilities & Equity $6,000,000

What amount of additional funds (AFN) will worldwide need from external sources to fund the expected growth? What does the AFN show?

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