Answer ASAP

High in the Sky is looking to expand its business and therefore requires additional financing needs to support this growth. Last year revenues were $0.5 million, the net profit was $20,000, the investment in assets was $1 million, payables and accruals were $200,000, and equity at the end of the year was $650,000. The venture did not pay out any dividends and does not expect to pay dividends in the foreseeable future. What would be your estimate of the additional funds needed next year to support a 10% percent increase in sales?

Options:

$77,000

$58,000

-$50,000

$25,000

-$58,000

$22,000

$50,000

Zero (No Additional Funds Required)