17-1. (Financial forecasting) Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO predicts that the firm's operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $12 million in sales with net income of $1.2 million. The firm anticipates that next year's sales will reach $15 million with net income rising to $2 million. Given its present high rate of growth, the firm retains all of its earnings to help defray the cost of new investments. The firm's balance sheet for the year just ended is as follows: Zapatera Enterprises, Inc. Balance Sheet 12/31/13 % of Sales Current assets $3,000,000 25% Net fixed assets 6,000,000 50% Total $9,000,000 Liabilities and Owners' Equity Accounts payable $3,000,000 25% Long-term debt 2,000,000 NA Total liabilities $5,000,000 Common stock 1,000,000 NA Paid-in capital 1,800,000 NA" Retained earnings 1.200,000 Common equity 4,000,000 Total $9,000,000 ANA. This figure does not vary directly with sales and is assumed to remain constant for purposes of forecasting next year's financing requirements. Estimate Zapatera's total financing requirements (total assets) and its net funding requirements (discretionary financing needed) for 2014