Blue Elk Manufacturing

Balance Sheet

For the Year Ended on December $31$

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 $$500,000$ net income on sales of $$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.

$$612,000$

$$586,500$

$$535,500$

$$510,000$