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 Manufacturing generated $400,000 net income on sales of $13,000,000. The firm expects sales to increase by 16% this coming year and also expects to maintain its long-run dividend payout ratio of 35%. 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, se 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? $60,600$70,400$54,400$64,000 In addition, Cold Duck Manufacturing is expected to generate not income this yeaf. The firm vill pay out some of its earnings as dividends but will retain the reat for future asset imestment, Again, the more a firm generates internaliy from its operations, the less it will have to raise externaliy from the eapital markets. Asrume that the firmis profit marg in and dividend payout rabo are expected to remain constant. Given the preceding information, Cold Duck expects to generate iarnings. (Hinti Round your answer to the nearest whole dollar.) from pperations that will be added to its existing retained According to the AFI equation and projections for Cold Duck Manufacturing: the firnsi AFi is