Sambonoza Enterprises projects its sales next year to be $5 million and expects to earn 5 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions (projections):
1. Current assets will equal 26 percent of sales, and fixed assets will remain at their current level of $1 million.
2. Common equity is currently $0.7 million, and the firm pays out half of its after-tax earning in dividends.
3. The firm has short-term payable and trade credit that normally equal 9 percent of sales, and it has no long-term debt outstanding.
What are Sambonoza's financing needs for the coming year?