New Inc. is a battery manufacturing firm. The company had sales of $25,000,000 in 2020. It expects sales to increase by 12% in 2021. The company had total assets of $15,500,000 at the end of 2020. The company is operating at full capacity, therefore all of the asset accounts increase with sales. At the end of 2020 the company had accounts payable of $1,250,000, accruals of $700,000 and short-term debt of $3,000,000. The company had no other liabilities at the end of 2020. Assume that accounts payable and accruals grow at the same rate as sales. The company has no preferred shares. The companys forecasted net profit margin for 2021 is 14%. The companys forecasted dividend payout ratio for 2021 is 85%. Assuming that short-term, long-term and common stock do change in 2021 what is the additional funds needed?

Question options:

$1,430,000

$646,000

$842,000

$1,038,000