Tower Company Tbk. is evaluating its financial needs for next year. The company has only been established for 5 years, the company's financial manager predicts current assets, operating expenses, and current liabilities will change according to the amount of sales company. This year's sales amounted to $20 million with a total net income of $1 million.

The company wants to make a financial plan with the consideration of increasing sales what will happen next year is 25% with an increase in net income of $1 million. Given the company's very high growth this year, all retained earnings company will be used to finance new investments. Current company balance sheet is as follows:

What is the estimated total funds needed by the company in 2021 (discreationary financing needed)!

Balance Sheet Tower Tbk. \begin{tabular}{lr} \hline ASSETS & 12/31/2020 \\ \hline Current Assets & $4.000.000 \\ Net Fixed Assets & 8.000.000 \\ Total & $12.000.000 \\ LIABILITIES AND EQUITY & \\ \hline Accounts Payable & $3.000.000 \\ Long Term Debt & 2.000.000 \\ Total Liabilities & $5.000.000 \\ Common Stock & 1.000.000 \\ Paid in Capital & 1.800.000 \\ Retained Earnings & 4.200.000 \\ Common Equity & 7.000.000 \\ Total & $12.000.000 \\ \hline \end{tabular} Balance Sheet Tower Tbk. \begin{tabular}{lr} \hline ASSETS & 12/31/2020 \\ \hline Current Assets & $4.000.000 \\ Net Fixed Assets & 8.000.000 \\ Total & $12.000.000 \\ LIABILITIES AND EQUITY & \\ \hline Accounts Payable & $3.000.000 \\ Long Term Debt & 2.000.000 \\ Total Liabilities & $5.000.000 \\ Common Stock & 1.000.000 \\ Paid in Capital & 1.800.000 \\ Retained Earnings & 4.200.000 \\ Common Equity & 7.000.000 \\ Total & $12.000.000 \\ \hline \end{tabular}