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Question : CCC currently has sales of $22,000,000 and projects sales of

CCC currently has sales of $22,000,000 and projects sales of $28,600,000 for next year. The firm's current assets equal $7,000,000 while its fixed assets are $6,000,000. The best estimate is that current assets will rise directly with sales while fixed assets will rise by $400,000. The firm presently has $3,500,000 in accounts payable, $2,500,000 in long-term debt, and $7,000,000 in common equity. All current liabilities are expected to change directly with sales. CCC plans to pay $800,000 in dividends next year and has a 5.0% net profit margin. What are the company's additional funds needed for the next year? Question 10 options: 1) $1,870,000 2) $820,000 3) $1,450,000 4) $20,000 5) $2,500,000

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