Now it's time for you to practice what you've learned. Suppose that Barone Corporation's sales are expected to increase from $2 million this year (year 0 ) to $3 million next year (year 1 ). Its assets totaled $1,000,000 in year 0 . Barone is at full capacity, so its assets must grow in proportion to projected sales. At the end of year 0 , current liabilities are $800,000, consisting of $250,000 of accounts payable, $300,000 of notes payable, and $250,000 of accrued liabilities. Barone's profit margin is forecasted to be 3.00% and the forecasted retention ratio is 25.00%. Barone seeks to forecast the additional funds needed using the AFN equation. Let A0 represent Barone's assets and S0 represent sales in year 0 . Let S represent the change in sales in from year 0 to year 1. The projected increase in assets, as part of the AFN equation, is The projected increase in spontaneous current liabilities, as part of the AFN equation, is The projected increase in retained earnings, as part of the AFN equation, is The additional funds needed (AFN) is