In: Finance
Broussard Skateboard's sales are expected to increase by 15%
from $7.6 million in 2018 to $8.74 million in 2019. Its assets
totaled $5 million at the end of 2018.
Broussard is already at full capacity, so its assets must grow at
the same rate as projected sales. At the end of 2018, current
liabilities were $1.4 million, consisting of $450,000 of accounts
payable, $500,000 of notes payable, and $450,000 of accruals. The
after-tax profit margin is forecasted to be 4%. Assume that the
company pays no dividends. Under these assumptions, what would be
the additional funds needed for the coming year? Do not round
intermediate calculations. Round your answer to the nearest
dollar.