1. The Additional Funds Needed (AFN) equation Fuzzy Button Clothing Company has the following end-of-year balance sheet: The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Fuzzy Button Clothing Company generated $300,000 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 ratio of 45%. Suppose Fuzzy Button Clothing Company's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Fuzzy Button Clothing Company's expected sales. (Note: Do not round intermediate calculations.) $510,0005484,500$586,500$408,000 When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internaily, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Furry Button Ciothing Company this year? (Note: Do not round intermediate calculations.). $64,600$68,000$54,400$78,200 In addition, Fuzzy Button Clothing Company is expected to generate net incorne this year. The firm will pay out some of its earnings as dividends but wil retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externaily from the capital markets. Assume that the firm's profit margin and dividend poyout ratio are expected to remain constant. Given the preceding information, Fuzzy Button clothing Company is expected to generate s from operations that will be added to retained esrnings. (Note: Do not round intermediote calculotions.) According to the AFN equation and projections for Furry Button Clothing Company, the firm's AFN is S (Note: Do not round intermedate calculations.)