Suppose that Gyp Sum Industries currently has the balance sheet shown below, and thatsales for the year just ended were $10.6 million. The firm also has a profit margin of 25percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year.AssetsCurrent$2,396,000 Current liabilitiesassetsFixed assets 4,600,000Liabilities and EquityTotal assets $6,996,000Long-term debtEquityTotal liabilities andequity$ 2,168,7601,800,0003,027,240$6,996,000If all assets and current liabilities are expected to shrink with sales, what amount ofadditional funds will Gyp Sum need from external sources to fund the expected growth?(Enter your answer in dollars not in millions. Negative amount should be indicated bya minus sign.)Additional funds needed

A balance sheet is a financial statement that reports a company's assets, liabilities, and…

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.6 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year. Assets Current $2,396,000 Current liabilities Long-term debt Equity assets Fixed assets 4,600,000 Liabilities and Equity Total assets $6,996,000 Total liabilities and equity $ 2,168,760 1,800,000 3,027,240 $6,996,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.) Additional funds needed

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.6 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year. Assets Current $2,396,000 Current liabilities Long-term debt Equity assets Fixed assets 4,600,000 Liabilities and Equity Total assets $6,996,000 Total liabilities and equity $ 2,168,760 1,800,000 3,027,240 $6,996,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.) Additional funds needed

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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