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2. The Additional Funds Needed (AFN) equation Cold Duck Manufacturing Inc, has the following end-of-year balance sheet: The firm is currently in the process of

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2. The Additional Funds Needed (AFN) equation Cold Duck Manufacturing 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 lust ended. Cold Duck. Manufacturing Inc, generated $350,000 net income on sales of $14,000,000. The firm expects sales to increase by 18% this coming year and also expects to maintain ifs long-run dividend payout ratio of 40%. Suppose Cold Duck Manufacturing Incis assets are fully utized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Cold Duck Manufacturing Incis expected sales. (Note: Do not round intermediate calculations.) Suppose Cold Duck Manufacturing Incis assets are fully utilized. Use the additional funds needed (AfN) equation to determine the increase in total assets that is necessary to support Cold Duck Manufacturing incis expected sales. (Note: Do not round intermediate calculations.) $486,000$567,000$594,000$540,000 When a firm grows, some llabilities grow spontaneously along with sales. 5pontaneous labilities 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 Cold Duck Manufacturing inc, this year? (Note: Do not round intermediate calculations.) $64,800$75,600$79,200$77,000 In addition, Cold Duck Manufacturing 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 oxternaly from the copital marikets. Assume that the fim's profit margin and dividend poyout ratio are expected to remain constant. Glven the preceding information, Cold Duck Manufacturing Inc, is expected to generate 5 from operations that will be added to retained earmings. (Note: Do not round intermediate calculations.) According to the AFN equation and projections for Cold Duck Manufacturing inc, the firm's AFN is s (Note: Do not round

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