Green Moose Industries Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: $250,000 Cash and equivalents Accounts receivable Inventories Total Current Assets $150,000 400,000 350,000 $900,000 Current Liabilities: Accounts payable Accrued liabilities Notes payable Total Current Liabilities Long-Term Bonds 150,000 100,000 Net Fixed Assets: $500,000 1,000,000 $1,500,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt 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 Moose Industries generated $450,000 net income on sales of $14,500,000. The firm expects sales to increase by 16% this coming year and also expects to maintain its long-run dividend payout ratio of 35%. Suppose Green Moose Industries'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 Moose Industries's expected sales. O $528,000 O $408,000 O $504,000 O $480,000 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 Moose Industries this year? O $54,400 O $67,200 O $64,000 O $70,400 In addition, Green Moose Industries 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 firm's profit margin and dividend payout ratio are expected to remain constant. from operations that will be added to retained Given the preceding information, Green Moose Industries is expected to generate earnings. According to the AFN equation and projections for Green Moose Industries, the firm's AFN is $