Crum expects sales to grow by 60% in 2020, and operating costs should increase at the same rate. Fixed assets were being operated at 50% of capacity in 2019, but all other assets were used to full capacity. Underutilized fixed assets cannot be sold. Current assets and spontaneous liabilities should increase at the same rate as sales during 2020. The company plans to finance any external funds needed as 100% notes payable (6% interest). Determine AFN after one pass. After taking financing feedbacks into account, determine AFN after the second pass.

2019 Actual 2020 Forecast Assumption Financing Feedback 1st Pass 2nd Pass Sales Operating costs $1,000.00 800.00 EBIT Interest $ 200.00 16.00 EBT Taxes (40%) $ 184.00 73.60 Net Income *Dividends (40%) $ 110.40 44.16 Addition to R.E. $ 66.24 Current Assets Net fixed Assets $ 700.00 300.00 Total assets $ 1,000.00 A/P and Accruals N/P @ 6.00% Common stock Retained earnings $ 150.00 200.00 150.00 500.00 Total Liab & Equity $ 1,000.00 AFN *Dividend ratio is 40% of net income Interest AFN Financing: Weights: Dollars: Interest Expense: N/P 100%