What is the New Funds?

Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Assets Cash Accounts receivable ed $ 18 7 Balance Sheet (in $ millions) Liabilities and Stockholders' Equity $ 10 Accounts payable 32 Accrued wages 33 Accrued taxes $ 75 Current liabilities 43 Notes payable Common stock Retained earnings $ 118 Total liabilities and stockholders' equity Inventory Current assets Fixed assets 11 ok $36 14 17 51 Total assets $ 118 t aces Owen's Electronics has an aftertax profit margin of 9 percent and a dividend payout ratio of 50 percent. If sales grow by 25 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).) search AE