Problem:

ECG Monitors is forecasting that sales next year will be $8,640,000, a 20 percent increase over current sales. ECG has total assets of $3,840,000 and all assets will increase proportionately with sales. Of the current liabilities, only accounts payable (now $740,000) will increase with sales.

Required:

Question: What total financing will be needed by ECG to support the expected sales increase?

Note: Please explain comprehensively and give step by step solution.