Calculate the AFNWC (additional funds needed for working capital) with the information below:

************************YEAR T+1

Revenues $5,700.00

COGS $4,560.00

Gross Profit $1,140.00

Operating Expenses $500.00

Depreciation $27.00

EBIT $613.00

Interest Expense $35.00

EBT $578.00

Taxes $231.20

NI $ 346.80

Dividends $ 0.00

RE $346.80

************************Balance Sheet YEAR T+1 YEAR T

Cash and Equivalents $714.80 $120.00

Accounts Receivable $500.00 $500.00

Inventory $300.00 $340.00

Total Current Assets $1,514.80 $960.00

Fixed Assets $660.00 $800.00

Accumulated Depreciation $227.00 $200.00

Net Fixed Assets $433.00 $600.00

Total Assets $1,947.80 $1,560.00

Accounts Payable $320.00 $300.00

Short-Term Notes Payable $40.00 $50.00

Accruals $11.00 $10.00

Total Current Liabilities $371.00 $360.00

Long-Term Debt $780.00 $750.00

Total Liabilities $1,151.00 $1,110.00

Common Stock $120.00 $120.00

Retained Earnings $676.80 $330.00

Total Shareholders Equity $796.80 $450.00

Total Liabilities & Shareholders Equity $ 1,947.80 $1,560.00

************************Formula:

AFN = (A*/S0)S (L*/S0)S MS1(RR)

A- Assets tied directly to sales

L-spontaneous liabilities that are affected by sales

S0=the previous year's sales

S1=total projected sales for next year

S=the change in sales between S0 and S1

M=profit margin

MS1=projected net income

RR=the retention ratio from net income (equal to 1 minus the dividend payout ratio; disregard if dividends are not declared).