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iarlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $4 million

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iarlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $4 million at the enc 021. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021 , current liablities are $1 million, consisti $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%. a. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out vour answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. 5 b. Why is this AFN different from the one when the company pays dividends? 1. Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of additional fund needed. 11. Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of assets needed III. Under this scenario the company would have a higher level of spontaneous liabilities, which would reduce the amount of additiona. funds needed. IV. Under this scenario the company would have a lower level of retained earnings, which would increase the amount of additional fun needed. V. Under this scenario the company would have a lower level of retained earnings, which would decrease the amount of additional fu needed. iarlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $4 million at the enc 021. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021 , current liablities are $1 million, consisti $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%. a. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out vour answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. 5 b. Why is this AFN different from the one when the company pays dividends? 1. Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of additional fund needed. 11. Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of assets needed III. Under this scenario the company would have a higher level of spontaneous liabilities, which would reduce the amount of additiona. funds needed. IV. Under this scenario the company would have a lower level of retained earnings, which would increase the amount of additional fun needed. V. Under this scenario the company would have a lower level of retained earnings, which would decrease the amount of additional fu needed

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