he firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, old Duck Manufacturing Inc. generated $500,000 net income on sales of $14,500,000. The firm expects sales to increase by 19% this coming year nd also expects to maintain its long-run dividend payout ratio of 45%. uppose Cold Duck Manufacturing Inc.'s assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total ssets that is necessary to support Cold Duck Manufacturing Inc.'s expected sales. (Note: Do not round intermediate calculations.) $655,500 $598,500 $541,500 $570,000 Ihen a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate ternally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Cold uck Manufacturing Inc. this year? (Note: Do not round intermediate calculations.) $79,800 $72,200 $87,400 $76,000 Cold Duck Manufacturing Inc. Balance Sheet For the Year Ended on December 31 Assets Current Assets: Cash and equivalents Accounts receivable Inventories Total Current Assets Net Fixed Assets: Net plant and equipment (cost minus depreciation) Liabilities Current Liabilities: Accounts payable $250,000 150,000 100,000 $500,000 Long-Term Bonds 1,000,000 $1,500,000 \begin{tabular}{|c|c|c|c|} \hline & & \multicolumn{2}{|l|}{ Common Equity } \\ \hline & & Common stock & 800,000 \\ \hline & & Retained earnings & 700,000 \\ \hline & & Total Common Equity & $1,500,000 \\ \hline Total Assets & $3,000,000 & Total Liabilities and Equity & $3,000,000 \\ \hline \end{tabular} In addition, Cold Duck Manufacturing Inc. 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. Given the preceding information, Cold Duck Manufacturing Inc. is expected to generate \$ retained earnings. (Note: Do not round intermediate calculations.) from operations that will be added to According to the AFN equation and projections for Cold Duck Manufacturing Inc., the firm's AFN is \$ intermediate calculations.) (Note: Do not round