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Geen Moose Industries nalance sheet For the Year Endrd on December 31 that is neceisary te seport Green Hoose thessoies expested sales. $570,000 tots tow

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Geen Moose Industries nalance sheet For the Year Endrd on December 31 that is neceisary te seport Green Hoose thessoies expested sales. $570,000 tots tow 5027,000 Supoose Green Hoose Industries's assets are fully utilind. Use the addibical funds noeded (AFN) equation to deterine Be increase in total assets that is necessary to support Grees Moose frifustries's expected sales. $570,000 2585,000 5027,000 5055,500 When a firm grows, wome liablates grow ipontaneoudy along with sales. Spontaneoun liablities are a source of capital that the firm will penerate internalfy, so ther reduce the need for external captal, now moch of the total increase in assets wil be supplied by spentanfous fabinties for Green Moose Indutries this rear? $93,600 575,000 $87,400 301,200 In addeios, Green Hoose Industries is empected to generate net income this vear, The firm wal par out some ef its earnings as dividends buk will retain the rest for future asset iwestment, Again, the more a firm generates internally from its operations, the lest it will have to rase eatemally from the capital markets, Assume that the firm's prolit margin and dividend parout ratib are expected to remain constant. Oren the preceding infarnulion, Green Hoose Industries is expected to venerate: froen sperations that wal be added to retained earnings. Acronding to the AFN equation and peojectsons for Green Moose toduntries, the firm's AFN is

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