1. Edmonds Corporation's sales are expected to increase from $5.5 million in 2016 to $6 million in 2017. Its assets totaled $3.3 million at the end of 2016. Edmonds is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $0.8 million, consisting of $300,000 of accounts payable, $140,000 of notes payable, and $360,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio is 30%. a. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Edmonds Corporation's expected sales. Increase in total assets =$ b. What is the amount of spontaneous liability? (Hint: LO) LO = $ c. How much of the total increase in the assets will be supplied by retained earnings? The total increase in the assets will be supplied by retained earnings = $ d. Use the AFN equation to forecast the additional funds Edmonds will need for the coming year. AFN = $