Please explain how to solve the following: Thank you

1. Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.

Last year's sales = S0 $350 Last year's accounts payable $40

Sales growth rate = g 30% Last year's notes payable $50

Last year's total assets = A0* $660 Last year's accruals $30

Last year's profit margin = PM 5% Target payout ratio 60%

Select the correct answer.

a. $160.7 b. $157.1 c. $164.3 d. $171.5 e. $167.9

2. In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?

Last year's sales = S0 $200,000 Last year's accounts payable $50,000

Sales growth rate = g 40% Last year's notes payable $15,000

Last year's total assets = A0* $140,000 Last year's accruals $20,000

Last year's profit margin = PM 20.0% Target payout ratio 25.0%

Select the correct answer.

a. - $14,080 b. - $13,920 c. - $14,040 d. - $14,120 e. - $14,000