Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Liabilities: Current Assets: Cash and equivalents Accounts receivable Inventories 150,00 Accounts payable 400,000 Accrued liabilities 350,000 Notes payable $250,000 150,000 100,000 $500,000 1,000,000 Total Current Assets $900,000 Total Current Liabilities Net Fixed Assets: Long-Term Bonds Total Debt Net plant and equipment (cost minus depreciation) $2,100,000 $1,500,000 Common Equity Common stock Retained earnings 800,000 700,000 $1,500,000 $3,000,000 Total Common Equity Total Liabilities and Equity Total Assets $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, Green Caterpillar Garden Supplies Inc. generated $350,000 net income on sales o $14,000,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 45%. Suppose Green Caterpillar Garden Supplies Inc.'s assets are fully utilized, Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Green Caterpillar Garden Inc.'s expected sales Supplies O $510,000 O $535,500 O $408,000 O $433,500 When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Green Caterpillar Garden Supplies Inc. this year? O $78,200 $68,000 O $71,400 O $81,600 Garden Supplies Inc. is expected to generate net income this year The firm will pay