Lamb Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO, Kole Kheil, predicts that the firms operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales.

Last year Lamb Enterprises had $12.60 million in sales with net income of $1.25 million. The firm anticipates that next years sales will reach $15.23 million with net income rising to $2.05 million. Given its present high rate of growth, the firm retained all of its earnings to help defray the cost of new investments.

The firms balance sheet for the year just ended is as follows:

1. Estimate Lamb's total financing requirements (total assets) in $:
2. Estimate Lamb's net financing needs (discretionary financing need) for 2023 in $:

\begin{tabular}{|lrc|} \hline Balance Sheet & 12/31/2022 & % of Sales \\ \hline Current assets & 3,400,000 & 26.984% \\ \hline Net fixed assets & 5,700,000 & 45.238% \\ \hline \multicolumn{1}{|c|}{ Total } & 9,100,000 & \\ \hline Liabilities \& owners' equity & & \\ \hline Accounts payable & 2,700,000 & 21.429% \\ \hline Long-term debt & 2,400,000 & N/A \\ \hline \multicolumn{1}{|c|}{ Total liabilities } & 5,100,000 & \\ \hline Common-stock & 1,100,000 & N/A \\ \hline Paid-in capital & 2,100,000 & N/A \\ \hline Retained earnings & 800,000 & \\ Common equity & 4,000,000 & \\ \hline \multicolumn{1}{|c|}{ Total } & 9,100,000 & \\ \hline \end{tabular}