Answers choices for the first blank, "Green Moose will require ... (480,000 / 456,000 / 432,000 / 408,000)"

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Answers for the third and fourth are free-response.

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3. The Additional Funds Needed (AFN) equation Aa Aa Green Moose Industries has the following end-of-year balance sheet Green Moose Industries Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets Current Liabilities: Cash and equivalents Accounts receivable Inventories $150,000 Accounts payable $250,000 150,000 100,000 $500,000 1,000,000 $1,500,000 400,000 350,000 $900,000 Accrued liabilities Notes payable Total Current Assets Total Current Liabilities Net Fixed Assets: Long-Term Bonds Net plant and equipment (cost minus depreciation) $2,100,000 Total Debt Common Equity Common stock 800,000 700,000 $1,500,000 $3,000,000 Retained earnings Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity 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, Green Moose Industries 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 40%. Suppose Green Moose'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 Green Moose 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 Green Moose this year? $67,200 $64,000 O $57,600 $60,800 In addition, Green Moose Industries 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 externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Green Moose expects to generate $ from operations that will be According to the AFN equation and projections for Green Moose Industries, the firm's AFN is