The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Fuzzy Button Clothing Company generated $500,000 net income on sales of $14,000,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. Suppose Fuzzy Button's assets are fully utlized. Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that Fuzzy Button will require in additional assets. When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous lial internally, so they reduce the need for external capital. How much of the total increase in Button this year? urce of capital that the firm will generate supplied by spontaneous liabilities for Fuzzy $81,600 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Fuzzy Button Clothing Company generated $500,000 net income on sales of $14,000,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. Suppose Fuzzy Button's assets are fully utilized, Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that fuzzy Button will require in additional assets. When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous Habilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Fuzzy Button this year? $81,600 $68,000 $71,400 $57,800 In addition, Furzy Button Clothing Company is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm geserates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firm's profit maroin and dividend payout ratio are expected to remain constant. Given the preceding information, Fuzzy Button expects to generate earnings. (Hint: Round your answer to the nearest whole dollar) from operations that will be added to its existing retained According to the AFN equation and projections for Fuzzy Button Clothing Company, the firm's AFN is
