2. The Additional Funds Needed (AFN) equation Furzy Bukton Clothing Company 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 just ended, Fuzzy Button Clothing Compsny generated $450,000 net income on sales of $13,500,000. The firm expects sales to increase by 16% this coming year The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Fuzzy Button Clothing Company generated $450,000 net income on sales of $13,500,000. The firm expects sales to increase by 16% this coming year and also expects to maintain its-long-run dividend payout ratio of 45%. Suppose Fuzzy Button Clothing Company's assets are fully utilized, Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Fuzzy Button Clothing Company's expected sales. (Note: Do not round intermediate calculations.) $408,000$480,000$432,000$504,000 When a firm grows, some llabilities grow spontaneousty aiong with sales. Spontaneous liabilities are a source of capital that the firmi 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 Furzy Button Clothing Company this year? (Note: Do not round intermediate catculations.) $64,000$67,200$54,400$57,600 In addition, Fuxzy Button Clothing Company is expected to generate net income this year. The firm will pay out some of its earnings as dividenids 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 externally from the capital markets, Assume that the firm's profit margin and chidend payout ratio are expected to remain constant. Given the preceding information, Fuzzy Button Clothing Company is expected to generate 5 from operations that will be added to retained earnings, (Note: Do not round intermediate calculations.) According to the AFN equation and projections for Fuzzy Button Clothing Company, the firm's AFN is $ (Note: Do not round intermediate calculations.)