Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that

sales for the year just ended were $$10\mathrm{.}2$ million. The firm also has a profit margin of $30$

percent, a retention ratio of $20$ percent, and expects sales of $$8\mathrm{.}2$ million next year.

Total assets $$6,324,000$ Total liabilities and equity $$6,324,000$

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?

$($Enter your answer in dollars not in millions. Negative amount should be indicated by a

minus sign.$)$Complete the following analysis. Do not hard code values in your calculations, and

do not round intermediate calculations.

Necessary increase in assets

Spontaneous increase in liabilities

Projected increase in retained earnings

Additional Funds Needed