12-1 AFN EQUATION Carlsbad corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. It's assets total $3 million at the end of2016. Carlsbad is at full capacity, so its assets most grow in proportion to projected sales. At the end of 2016 current liabilities are SImillion, consisting of $250,000 of accounts payable, $500,000 of notes payable and $250,000 of accrued liabilities. Its profit margin is forecast to be 3%, and the forecast it retention ratio is 30% Used the AFN equation to forecast the additional funds Carlsbad will need for the coming year