Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Cash $650,000 Accounts Payable $200,000 Accounts Receivable $300,000 Notes Payable $30,000 Short-term investment $150,000 Accrued Liabilities $80,000 Inventory $100,000 Total Current Liabilities $310,000 Total Current Assets $1,200,000 Long Term Debt $475,000 Net Plant and Equipment $500,000 Total Debt $785,000 Total Assets $1,700,000 Common Stock (6,000 Shares) $419,000 Retained Earnings $496,000 Total Common Equity $915,000 Total Liabilities and Owners' Equity $1,700,000 Consider MicroDrive inc. under the following circumstances. The firm reported the balance sheet above. Sales were $500,000 in 2020, and the firm plans to increase sales by 20% in 2021. The firm's profit margin is 6%, and it pays out 25% of its net income in dividends. a) (8 points) Calculate the firm's additional funds needed (AFN) for the next year. b) (4 points) Assume that the firm's CEO does not want to issue any new debt or equity. In other words, the firm's management does not want any new external financing. What is the firm's growth rate without any external financing? c) (3 points) State one possible reason why the firm's CEO does not want to get new external financing. (1-2 sentences, you do not need to provide any calculations or numerical answers). d) (5 points) Assume that you are the CFO of MicroDrive inc. Your CEO asked you to provide some possible ways to decrease the firm's AFN. Other things held constant, what are two possible ways to decrease the firm's AFN? (1-2 sentences, you do not need to provide any calculations or numerical answers)