Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,700,000. Also, at year-end 2015, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2016, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 4%, and its payout ratio will be 55%.

A B Assets 2015 $1,700,000 Accounts payable Accruals Notes payable Current liabilities $500,000 200,000 300.000 $1,000,000 AFN: Required % increase in assets % increase in spontaneous liabilities % increase in retained earnings New level of sales Dollar change in sales % change in sales A B Assets 2015 $1,700,000 Accounts payable Accruals Notes payable Current liabilities $500,000 200,000 300.000 $1,000,000 AFN: Required % increase in assets % increase in spontaneous liabilities % increase in retained earnings New level of sales Dollar change in sales % change in sales