Consider the following financial statements for Industrial Supply Company. (Actual) December 31, Balance sheet Year 1 Comments Assets Cash $ 500,000 25% increase (assumption) Accounts receivable 2,100,000 25% increase (assumption) Inventories 3,800,000 25% increase (assumption) Total current assets $ 6,400,000 Fixed assets, net $ 1,100,000 No increase (assumption) Total assets (A) $ 7,500,000 Liabilities and Equity Accounts payable (CL) $ 1,600,000 25% increase (assumption) Notes payable 900,000 Total current liabilities $ 2,500,000 Long-term debt 500,000 No change (assumption) Stockholders equity 4,500,000 Total liabilities and equity $ 7,500,000 Income Statement Year 1 Sales (S) $14,700,000 25% increase (forecasted) Expenses, including interest & taxes 13,800,000 Earnings after taxes (EAT) $ 900,000 Dividends paid (D) 250,000 No change (assumption) Retained earnings $ 650,000 Selected Financial Ratios Current ratio 2.56 times Debt ratio 40.00% Return on stockholders equity 20.00% Net profit margin on sales 6.12% Determine the amount of additional financing needed for Year 2 under the following conditions: Increase in Sales Increase in Expenses $3,675,000 $3,450,000 Suppose that the company has excess fixed assets and that no increase in net fixed assets is required as sales are increased. Assume that the company plans to maintain its dividend payments at the same level in Year 2 as in Year 1. Round your answer to the nearest dollar.

$