Suppose that the 2016 actual and 2017 projected financial statements for Comfy Corners Catbeds are initially shown as follows. In these tables, sales are projected to rise by 22 percent in the coming year, and the components of the income statement and balance sheet that are expected to increase at the same 22 percent rate as sales are indicated by green type. Assuming that Comfy Corners Catbeds wants to cover the AFN with half equity, 25 percent long-term debt, and the remainder from notes payable, what amount of additional funds will be needed if debt carries a 10 percent interest rate?

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Income Statement Balance Sheet 2016 Actual 2017 Forecast 2016 Actual 2017 Forecast Sales $4,000,000 $4,880,000 Assets $ 600,000 S 732,000 Cash 3.172.000 Costs except depreciation 2,600,000 Depreciation 1,000,000 1,220,000 137,000 167,140 Accounts receivable $ 400,000 $ 488.000 1,013.000 EBIT Inventories 1,235,860 $2.135,000 $1,750,000 Interest 198,000 198.000 Total current assets $ 290.000 Net plant and equipment EBT $ 202,000 5,000,000 6.100,000 Taxes (40%) Net income $6.750.000 80,800 116.000 Total assets $8.235,000 $ 121,200 $ 174.000 | Llabilites and Equity Accounts payable Notes payable Accruals Total current llabilitiese Long-term debt Common dividends Addition to retained earnings $ 60.600 $ 179,000 $ 60,600 $ 218,380 $ 60,600 $ 113,400 980,000 980,000 375,000 457,500 $1,534,000 $1,655,880 1.000,000 1,000,000 Total debt $2.534,000 $2.655,880 Common stock $4,000,000 $4,000,000 Retained earnings 216,000 329,400 Total common equity $4,216,000 $4,329,400 $6.985,280 Total labilities and equity $6,750,000