3. The Additional Funds Needed (AFN) equation Cold Duck Manufacturing 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; Cold Duck Manufactuning generated $400,000 net income on sales of $13,500,000. The firm expects sales to increase by 16% this coming yeor and also expects to mointain its long-tun dividend payout ratio of 45%. Duck Manufacturing generated $400,000 net income on sales of $13,500,000. The firm expects sales to ir so expects to maintain its long-run dividend payout ratio of 45%. Suppose Cold Duck's assets are fully utilized. Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that Cold Duck will require in additional assets. When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities 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 this year? In adaition, Cold Duck Manufacturing 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. Agoin, the more a firm generates internally from its operations, the less it will have to raise externally from the capital mankets. Assume that the firms profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Cold Duck expects to generate from operations that wil be added to its existing retained eamings, (Hint Round your answer to the nearest whole dollac.) According to the ANN equation and projections for Cold Duck Manufactiring, the firm's AFN is