Gemini Management Systems is a small firm with excellent growth opportunities. Gemini's sales last year were $3 million. They are expected to grow 20% in the coming year. Gemini has no access to any external capital and wants to know whether it can finance its planned growth with its internally generated funds. Gemini requires additional assets equal to 60% of the increase in sales. Short-term liabilities will increase by 20% of the sales increase. The net profit margin is 10%, and Gemini plans to pay a $0.14 million cash dividend next year. Using the AFN equation, will Gemini have enough funds to finance its growth?

Group of answer choices

No, they will be short about $20,000.

Yes, they will have excess funds of $30,000.

No, they will will be short about $10,000.

Yes, they will have excess funds of $20,000.