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, Green Moose Industries generated $$300,000$ net income on sales of $$12,500,000.$ The firm expects sales to increase by $16\%$ this coming year and also expects to maintain its long$-$run dividend payout ratio of $35\%.$

Suppose Green Moose Industries's assets are fully utilized. Use the additional funds needed $($AFN$)$ equation to determine the increase in total assets that is necessary to support Green Moose Industries's expected sales.

$$528,000$

$$480,000$

$$576,000$

$$408,000$

When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities 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 Green Moose Industries this year?

$$70,400$

$$54,400$