1. The Additional Funds Needed (AFN) equation Green Caterplilar Garden Supplies Inc. 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 fust ended, Green Caterpillar Garden Supplies inc. generated $350,000 net income on sales of $13,000,000. The firm expects sales to increase by 19% this coming year and also expects to mointain its long-run dividend payout ratio of 35%. 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 Inci's expected sales. $456,000$484,500$570,000$627,000 When a firm grows, some llabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Green Caterpillar Garden Supplies Inc. this year? $60,800$76,000$83,600$64,600 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. raise externafy from the capical markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Gven the preceding information, Green Coterpllar Garden Supplies Inc. Is expected to generate from operations that will be added to retained earnings. According to the AFN equation and projections for Green Caterpillar Garden Supplies inc., the firm's AFN is