please answer the 2 questions

Isbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $3 million at the enid of 21. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021 , current liabilities are $1 million, consisting $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. 1 ts profit margin is forecasted to be 3%. a. Assume that the compony 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 million should be entered as 5,000,000, Round your answer to the nearest doliar. b. Why is this AFN different from the one when the company pays dividends? 1. Under this thcenorio the company would have a lower level of retained earnings, which weuld decrease the amount of additional funds needed. 11. Under this scenario the compony would have a higher level of retained earnings, which would reduce the amount of additional funds needed. III. Under this scenario the compony would have a higher level of retained earnings, which would reduce the amount of assets needed. IV. Under this scenario the company would have a higher level of spontanaous liabilities, which would reduce the omount of additional funds needed. V. Under this scenario the company would have a lower level of retained earnings, which would increaselthe amount of addibional funds. needed