1. The Additional Funds Needed (AFN) equation Blue Elk Manufactuning has the following end-of-year balance sheet: The firm is airrently an the process of forecasting sales, asset requirements, and required funding for the coming year, in the year that just ended, Bue Elk Manufacturing generated $350,000 net income on sales of $14,000,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout rabo of 30%. Suppose Blue Elk Manufacturing's assets are fully ublized. Whe the additional funds needed (AFN) equabion to determme the increase in total assets that is necesary to support Blue Blk Manudacturing's expected sales. (Notes Do not round intermediate calailations.) $406,000$510,000$484,500$459,000 When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate intermally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Blue Elk Manufacturing this year? (Note: Do not round intermediate calculations.) $54,400 $64,600 568,000 $61,200 In addition, Blue Ek Manufacturing is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Blue Elk Manufacturing is expected to generate $ from operations that will be added to retained earnings. (Note: Do not round intermediate calculations.) According to the AFN equation and projections for Blue Hk Manufacturing, the firmis AFN is 5 , - (Note: Do not round intermediate calculations.)