Video Excel Online Structured Activity: Sales increase Paladin Furnishings generated $4 million in sales during 2016, and its year-end total assets were $2.2 million. Also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.55 for every $1.00 increase in sales. Paladin's profit margin is 3%, and its retention ratio is 50%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. Check My Work Reset Problem B14 Sales increase 5 6 Sales (S.) Rate of asset growth Total assets A Profit margin Retention ratio Current liabilities lo Notes payable Accounts payable Accrued liabilities $4,000,000 55.00% $2,200,000 3.00% 50.00% $500,000 $200,000 $200,000 $100,000 8 9 10 Accoun 11 12 13 Formulas 14 15 Projected increase in assets Spontaneous increase in liabilities Increase in retained earnings 1*(5,-5) x (S, -5.) XS #N/A #N/A #N/A *(S, -S.) *(S, -S.) S. Next Year's Sales (S.) = Increase in Sales = #N/A #N/A