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, Bohemian Manufacturing Company generated $$350,000$ net income on sales of $$13,000,000.$ The firm expects sales to increase by $19\%$ this coming year and also expects to maintain its long$-$run dividend payout ratio of $30\%.$

Suppose BMC$\text{'}$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 BMC will require in additional assets.

When a firm grows, some liabilities grow spontaneously along with sa $$541,500$ internally, so they reduce the need for external capital. How much of year?

$$60,800$

$$72,200$

$$87,400$

$$76,000$

In addition, Bohemian Manufacturing 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 generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant.

Given the preceding information, BMC expects to generate

$($Hint: Round your answer to the nearest whole dollar.$)$ from operations that will be added to its existing retained earnings.

According to the AFN equation and projections for Bohemian Manufacturing Company, the firm's AFN is