2. AF N Equation Due to a change in demand for its products, Microdot Ltd is expecting to expand hugely in the year starting today. Up until now, fixed assets have only been utilised at 80 percent of total capacity. Therefore the chief financial ofcer needs to determine what additional funds Microdot Ltd will need to raise by the end of the current year. Microdot's sales, last year, were $95 million and the expected growth rate for sales in the current year is 45 percent. All sales are credit sales, Mcrodot Ltd's net profit margin is 8 percent, and 40 percent of net prot after tax [NPAT or NI) will be paid out as a dividend. Microdot Ltd faces, in the coming year, two severe restrictions on its exibility: the company's debt ratio must not exceed 55% and the current ratio may not fall below 2. The balance sheet Microdot Ltd for the year that ended this morning is: Cash 5,000,000 I Accounts Receitiahle 19,000,000| Inventory 1?,000.000 | Current Assets i 41,000,000] I Fixed Assets 40.000.000l Accumulated Depreciation 3.000.000l Net xed Assets i 310100.000 | Accounts Payable ' 10,000,000! Notes Payable 2.000.000: Accrued Wages etc 8.000.000i Current Liabilities | | Long term debt | Total Liabilities i Ordinary shares 22,500,000i Retained Earnings 15,500,000! Total Equities | i Total Liabilities and DE |