Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.5 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $8.5 million next year.
Assets
Liabilities and Equity
Current assets
$2,325,000
Current liabilities
$2,047,500
Fixed assets
4,500,000
Long-term debt
1,750,000
Equity
3,027,500
Total assets
$6,825,000
Total liabilities and equity
$6,825,000
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 ______________________________________________