If sales are expected to increase by 25% from $7.8 million in 2016 to $9.75 million in 2017. The assets totaled $5 million at the end of 2016. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 70%. Use the AFN equation to forecast additional funds needed for the coming year.