Average: 4 Attempts:* 1. The AFN equation Green Moose Industries has the following end-of-year balance sheet: a Aa Green Moose Industries Balance Sheet For the Year Ended on December 31 Assets Current Assets Current Liabilities: Cash and equivalents Accounts receivable $250,000 150,000 100,000 $500,000 1,000,00o 1,500,0OD 150,000 AcCounts payable 400,000 350,000 Notes payable Accrued liabilities Total Current Assets $900,000 Total Current Liabilities Net Fixed Assets: Long-Term Bonds Net plant and equipment cost minus depreciation) $2,100,00D Total Debt Common Equity B00,000 700,000 1,500,0OD $3,000,00D Common stock Retained earnings Total Common Equity Total Assets 3,000,00D 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 300,000 net income on sales of $14,000,000 The firm expects sales to increase by 15% this coming year and also expects to maintain its long-run dividend payout ratio of 35%. Suppose Green Moose Industries's assets are fully utilized. Use the additional funds needed (AFN) equation to detemine the increase in total assets that is necessary to support Green Moose Industries's expected sales. $450,000 Q 427,500 472,500 $495,000