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Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 millon in 2022 , or by 20%, Its assets totaled $2 million at the end of: 2021. Carlsbad is at full capacity, 50 its assets must grow in proportion to projected sales. At the end of 2021 , current liabilites are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and 5250,000 af accrued llabilies. Its profit margin is forecasted to be 4%. a. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carisbod will need for the coming year. Write out vour answer completely. For example, 5 million should be entered as 5,000,000, Reund your answer to the nearest dollar. 5 b. Why is this AFN different from the one when the company pays dividends? 1. Under this scenano the company would have a higher level of retained eamings. which would reduce the amount of additional funds. needed. II. Under this scenario the company would have a higher level of retained eamings, which would reduce the amount of astets needais. III. Under this scenario the company would have a higher level of spontaneous liabilities, which would reduce the aavount of additional fonds needed. IV. Under this scenario the company would have a lower level of retained eamings, which would inerease the amount of addional funds: nieeded. V. Under this scenario the company would have a lower level of retained earningsi which would decrease the ampunt of additional funds. needed