Fuzzy Button Clothing Company has the following end-of-year balance sheet:

Fuzzy Button Clothing Company Balance Sheet For the Year Ended on December 31

Assets		Liabilities
Current Assets:		Current Liabilities:
Cash and equivalents	$150,000	Accounts payable	$250,000
Accounts receivable	400,000	Accrued liabilities	150,000
Inventories	350,000	Notes payable	100,000
Total Current Assets	$900,000	Total Current Liabilities	$500,000
Net Fixed Assets:		Long-Term Bonds	1,000,000
Net plant and equipment	$2,100,000	Total Debt	$1,500,000
(cost minus depreciation)
		Common Equity
		Common stock	800,000
		Retained earnings	700,000
		Total Common Equity	$1,500,000
Total Assets	$3,000,000	Total Liabilities and Equity	$3,000,000

The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Fuzzy Button Clothing Company generated $400,000 net income on sales of $13,000,000. The firm expects sales to increase by 19% this coming year and also expects to maintain its long-run dividend payout ratio of 35%.

In addition, Fuzzy Button Clothing Company is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firms profit margin and dividend payout ratio are expected to remain constant.

Given the preceding information, Fuzzy Button Clothing Company is expected to generate $

from operations that will be added to retained earnings. (Note: Do not round intermediate calculations.)

According to the AFN equation and projections for Fuzzy Button Clothing Company, the firms AFN is $

. (Note: Do not round intermediate calculations.)