Carlsbad Corporation's sales are expected to increase from $5 million in 2018 to $6 million in 2018, or by 20%. Its assets totaled $3 million at the end of 2018. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2018, current liabilities are $1 million, consisting of $250,000 of accounts payable and $500,000 notes payable and $250,000 of accrued liability. Its profit margin is forecasted to be 3% and the forecasted retention ratio is 30%.

Question: Assume the company pays no dividends. Under these assumptions, what additional funds would be needed for the comping year?

Why is this AFN different from the on found in the equation above?