Cryo-vac expects sales to increase 20% next year from the current level of $5,000,000. The firm has current assets of $1,000,000 and fixed assets of $1,500,000. Cryo-vac has current liabilities of $750,000 of which $300,000 are in notes payable. What additional financing will Cryo-vac need to support the expected sales increase if its profit margin is 8% and the firm expects to pay out $200,000 in dividends? An increase in net fixed assets of $300,000 will be required. Hint: Assuming the (current assets) and (current liabilities- notes payable) will grow at the same rate as the sales. change in current asset = ?? change in fixed asset = ?? change in (current liability - notes payable) = ?? net income = ?? addition to retained earnings = net income - dividend = ?? additional financing = change in current asset + change in fixed asset - change in (current liabilities - notes payable) - addition to retained earnings

How much is the new sales?

Group of answer choices

1,000,000

6,000,000

5,000,000

5,500,000

How much is the addition to retained earnings?

Group of answer choices

480,000

180,000

280,000

200,000

How much is the change in assets (current + fixed assets)?

Group of answer choices

300,000

0

100,000

200,000

How much is the additional financing needed?

Group of answer choices

130,000

60,000

50,000

150,000