Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.2 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $7.2 million next year.

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? (Enter your answer in dollars not in millions.)

Current assets 1,504,000 Current Liabilities 1,597,120

Fixed Assets 4,200,000 Long Term Debt 1,900,00

Total Assets 5,704,000 Equity 2,206,880

Total Liabilities and Equity 5,704,000

2.Dandee Lions, Inc. has a cash balance of $96,000, accounts payable of $211,000, inventory of $194,000, accounts receivable of $310,000, notes payable of $56,000, and accrued wages and taxes of $70,500.

How much net working capital does the firm need to fund?

3.Assume a firm has a cash cycle of 73 days and an operating cycle of 127 days.

What is its payables turnover?

4.Assume a firm has a cash cycle of 69 days and an operating cycle of 108 days.

What is its average payment period?