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Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.4 million. The firm

Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.4 million next year.

Assets Liabilities and Equity
Current assets $ 1,616,000 Current liabilities $ 1,804,800
Fixed assets 4,400,000 Long-term debt 1,800,000
Equity 2,411,200
Total assets $ 6,016,000 Total liabilities and equity $ 6,016,000

If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth?

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