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arlsbad Corporation's sales are expected to increase from $5 milion in 2021 to $6 milion in 2022 , or by 20%. Its assets totaled $4 million at the end of 021. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021 , current liabilities are 51 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 5%. a. Assume that the company pays no dividends, Use the AFN equation to forecast the additional funds Carisbad will need for the coming year. Write out your answer completely. For example, 5 milion should be entered as 5,000,000. Round your answer to the nearest dollar b. Why is this AfN different from the one when the company pays dividends? 1. Under this scenario the company would have a lowar level of retained earnings, which would increase the amount of additional funds needed. II. Under this scenario the company would have a lower level of retained earnings, which would decrease the amount of additional fiahds needed. 111. Under this scenario the compony would have a higher level of retained earnings, which would reduce the amount of additional funds needed, IV. Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of assets needad. V. Under this scenario the compeny would have a higher lavel of spontaneous linbilities, which would reduce the amount of additional funds needed