Farnsbeck Inc. is forecasting a 15% increase in sales next year. Assume the company is operating at 85% capacity. The company has 50,000 shares of common stock outstanding. The firm will pay out 60% of its Net Income in dividends and move 40% into retained earnings

Based on the Income statement and balance sheet below answer the following questions.

At 85% capacity what level will sales have to reach for the discretionary items to become spontaneous, that is move in direct proportion to sales? [ Select ] ["$901,768", "$972,750", "$925,750", "$947,059"]

Compute the new level of net income for the company [ Select ] ["$60,220", "$54,060", "$66,525", "$76,935"] .

Compute the company's additional retained earnings for the year [ Select ] ["$18,220", "$21,345", "$26,610", "$30,420"]

Compute the new level of total assets required [ Select ] ["$587,750", "$602,680", "$597,592", "$575,880"]

Calculate the new level of current liabilities [ Select ] ["$158,357", "$162,568", "$197,720", "$179,630"]

Compute the company's new level of retained earnings on the balance sheet [ Select ] ["$105,386", "$97,034", "$110,610", "$124,293"]

Calculate the level of Additional Funds Needed (AFN) to support the increase in sales. [ Select ] ["-$12,646. The firm can increase sales without borrowing or issuing more stock", "$4,208. The firm will have to borrow or sell stock to increase sales by 15%.", "-$2,490. The firm can increase sales without borrowing or issuing more stock", "$6,200. The firm will have to borrow or sell stock to increase sales by 15%."]

Balance Sheet ASSETS 2019 CASH 29,000 ACCOUNTS RECEIVABLE 120,000 INVENTORIES 136,000 CURRENT ASSETS 285,000 GROSS PLANT AND EQUIPMENT 390,000 LESS: ACCUMULATED DEPRECIATION 130,000 NET FIXED ASSETS 260,000 TOTAL ASSETS 545,000 2018 25,000 100,000 125,000 250,000 350,000 100,000 250,000 500,000 LIABILITIES AND EQUITY ACCOUNTS PAYABLE ACCRURALS NOTES PAYABLE CURRENT LAIBILITIES LONG TERM DEBT TOTAL LIABILITIES COMMON STOCK ($1.00 par) RETAINED EARNINGS TOTAL OWNER'S EQUITY TOTAL LIABILITIES AND EQUITY 89,700 34,500 36,800 161,000 150,000 311,000 150,000 84,000 234,000 545,000 78,000 30,000 34,000 142,000 140,000 282,000 150,000 68,000 218,000 500,000 INCOME STATEMENT NET REVENUES & SALES COST OF GOODS SOLD GROSS PROFIT FIXED OPERATING EXPENSES (pre dep) DEPRECIATION EXPENSE OPERATING INCOME (EBIT) INTEREST INCOME BEFORE TAXES (EBT) INCOME TAXES (40%). NET INCOME Retained Earnings Dividends (Total) SHARES OUTSTANDING DIV Payout (per share)$$$ 2019 805,000 517,500 287,500 173,650 30,000 83,850 16,100 67,750 27,100 40,650 16,260 24,390 50,000 0.4878 2018 700,000 450,000 250,000 151,000 25,000 74,000 14,000 60,000 24,000 36,000 14,400 21,600 50,000 0.432