Sambonoza Enterprises projects its sales next year to be $3 million and expects to earn 6 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions(projections):

1. Current assets will equal 28 percent ofsales, and fixed assets will remain at their current level of $1million.

2. Common equity is currently $0.70 million, and the firm pays out half of itsafter-tax earnings in dividends.

3. The firm hasshort-term payables and trade credit that normally equal 12 percent ofsales, and it has nolong-term debt outstanding

What areSambonoza's financing requirements(i.e., totalassets) and discretionary financing needs (DFN) for the comingyear?