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Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.3 million. The firm also
Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.3 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $9.3 million next year. Fixed assets are currently fully utilized, and the nature of Wall-E's fixed assets is such that they must be added in $1 million increments. If current assets and current liabilities are expected to grow with sales, what amount of additional funds will Wall-E need from external sources to fund the expected growth? (Enter your answer in dollars not in millions.)
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