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Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.9 million next year. Assets Liabilities and Equity Current assets $ 2,621,000 Current liabilities $ 2,557,140 Fixed assets 4,900,000 Long-term debt 1,950,000 Equity 3,013,860 Total assets $ 7,521,000 Total liabilities and equity $ 7,521,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth?

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