please use proper formulae to evalute of afn

for a b and c

Carter Corporation's sales are expected to increase from $5 million in 2001 to $6 million in 2002 , or by 20 percent. Its assets totaled $3 million at the end of 2001. Carter is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2001 , current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after-tax profit margin is forecasted to be 5 percent, and the forecasted retention ratio is 30 percent. A. Use the AFN formula to forecast Carter's additional funds needed for the coming year B. What would the additional funds needed be if the company's year-end 2001 assets had been $4 million? Assume that all other numbers are the same. Why is this AFN different from the one you found in Requirement 1? Is the company's "capital intensity" the same or different? C. Return to the assumption that the company had $3 million in assets at the end of 2001 , but now assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Why is this AFN different from the one you found in Requirement 1