Carisbad Corporation's sales are expected to increase from $5 million in 2021 to $5 million in 2022, or by 20%. Its assets totaled $4 million at the end of 2021 . Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021 , current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of not payable, and $250,000 of acerued liabilties. Its profit morgin is forecasted to be 5%. a. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carisbad will need for the coming year. Write out your answer completelv. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ b. Why is this AFN different from the one when the company pays dividends? 1. Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of assets needed. II. Under this scenario the company would have a higher level of spontaneous liabitales, which would reduce the amount of additional funds needed. III. Under this scenario the company would have a lower level of retained earnings, which would increase the amount of additional funds needed. IV. Under this scenario the company would have a lower level of retained earnings, which would decrease the amount of additional funds needed. Under this scenarlo the company would have a higher level of retained earnings, which would reduce the amount of additional funds needed