1. The Additional Funds Needed (AFN) equation Green Caterpillar Garden Supplies Inc. has the following end-of-year balance sheet: Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Labilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment $2,100,000 Total Debt $1,500,000 (cost minus depreciation) Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity $1,500,000 Total Assets $3,000,000 Total abilities and Equity $3,000,000 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, Green Caterpillar Garden Supplies Inc generated $400,000 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 Green Caterpillar Garden Supplies inc's assets are fully utilized, use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Green Caterpillar Garden Supplies inc's expected sales. (Note: Do not round intermediate calculations.) The term is currently in the process of forecasting sales asset requirements, and required funding for the coming year. In the year that just ended, Green Caterpillar Garden Supplies Inc generated $400,000 net income on sales of $14,000,000. The firm expects sales to increase by 17 this coming year and also expects to maintain as long run dividend payout ratio of 45% Suppose Green Caterpaar Garden Supplies Inc.'s assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Green Caterpillar Garden Supplies in expected sales. (Note: Do not found intermediate calculations.) O $510,000 $8.500 $561.000 O S44 500 When a firm grows, some abbes grow spontaneously along with swe Spontaneous abbies we source of capital that the form will generate interly, so they reduce the need for external capital. How much of the total nomenats will be supplied by spontaneous attes for Grom Caterpillar Carden Supplies to this year? (Note: Do not round untermediate calaton) 574.300 O,000 O 178.200 O $64.600 In addition Green Caterpillar Garden Supplies Inc. is expected to generate come this year. The form will pay out some of scargas dividends but will the rest for future at investment Agn, the more a fum generates werally from its operations, the less it will have to externally from the capital markets. Assume that the firm's profit magn and dividend payout we expected to remain contant au In addition, Green Caterpillar Garden Supplies Inc. is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to ralse externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant Given the preceding information, Green Caterpillar Garden Supplies Inc. is expected to generates from operations that will be added to retained earnings. (Note: Do not round intermediate calculations.) (Note: Do not According to the APN equation and projections for Green Caterpillar Garden Supplies in the firm's EN IS '$ round intermediate calculations.)