ACC 111-Super Fun Toys, Inc., has the following balance sheet
Question # 00532688
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Updated on: 05/24/2017 01:15 AM Due on: 05/24/2017
Super Fun Toys, Inc., has the following balance sheet:
Assets:
Current Assets $3,500,000
Fixed Assets 5,100,000
Total Assets $8,600,000
Liability and Equity:
Current Liabilities $2,400,000
Long Term Debt 2,100,000
Equity 4,500,000
Total Liabilities and Equity
$8,600,000
Suppose Super Fun Toys, Inc., has sales of $8.9 million for the year just ended, the profit margin of the firm is 16 percent with a retention rate of 28 percent, and the firm expects sales of $10.8 million next year. If fixed assets will have to grow by $800,000 to support the sales growth, with current assets and current liabilities expected to grow with sales, what amount of additional funds will Super Fun Toys need from external sources to fund the expected growth?
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Rating:
/5
Solution: ACC 111-Super Fun Toys, Inc., has the following balance sheet