3. The Additional Funds Needed (AFN) equation Fuzzy Button Clothing Company has the following end-of-year balance sheet: The firm is currentiy 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 $14,500,000. The firm expects sales to increase by 18% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose fuzzy Button'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 Fuzzy Button will require $64,800 $57,600 $75,600 $72,000 In addition, Fuzzy Button Clothing Company 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 externaliy. from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Fuzzy Button expects to generate from operations that will be added to its existing retained eamings. (Hint: Round your answer to the nearest whole dolitat) According to the AfN equation and projections for Fuzzy Button Clothing Company, the firm's AFN is