Weatherford Industries Inc. has the following ratios: / 1.6; / 0.4; 0 * 0 0 * 0 A S L S profit margin =0.10; and retention ratio = 55%. Sales last year were $100M. Assuming that these ratios remain constant:

Suppose financial consultants report (1) that the inventory turnover ratio: Sales/Inventory = 3X versus an industry average of 4X and (2) inventories can be reduced and thus raise its turnover to 4 without affecting sales, profit margin or other asset turnover ratios. Determine the amount of additional funds the company will require next year if sales grow by 20%.