Suppose that Psy Ops Industries currently has the balance sheet

Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.0 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $7.0 million next year.

Assets Liabilities and Equity
Current assets $ 1,960,000 Current liabilities $ 1,520,000
Fixed assets 3,500,000 Long-term debt 2,000,000
Equity 1,940,000

Total assets $ 5,460,000 Total liabilities and equity $ 5,460,000

If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops 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

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