Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current $500,000 Liabilities Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus $2,100,000 Total Debt $1,500,000 depreciation) Common Equity Common stock 800,000 Retained earnings 700,000 Total Common $1,500,000 Equity Total Assets $3,000,000 Total Liabilities and $3,000,000 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, Blue Elk Manufacturing generated $300,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue Elk Manufacturing's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Elk Manufacturing's expected sales. $561,000 $510,000 $459,000 $484,500 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 Blue Elk Manufacturing this year? $68,000 $64,600 $74,800 $61,200 In addition, Blue Elk Manufacturing 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, Blue Elk Manufacturing is expected to generate $ from operations that will be added to retained earnings. According to the AFN equation and projections for Blue Elk Manufacturing, the firm's AFN is $ Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current $500,000 Liabilities Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus $2,100,000 Total Debt $1,500,000 depreciation) Common Equity Common stock 800,000 Retained earnings 700,000 Total Common $1,500,000 Equity Total Assets $3,000,000 Total Liabilities and $3,000,000 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, Blue Elk Manufacturing generated $300,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue Elk Manufacturing's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Elk Manufacturing's expected sales. $561,000 $510,000 $459,000 $484,500 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 Blue Elk Manufacturing this year? $68,000 $64,600 $74,800 $61,200 In addition, Blue Elk Manufacturing 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, Blue Elk Manufacturing is expected to generate $ from operations that will be added to retained earnings. According to the AFN equation and projections for Blue Elk Manufacturing, the firm's AFN is $