1. Practice Problem 16-1 20 eBook Futuristic Development (FD) generated $2 million in sales last year with assets equal to $4 million. The firm operated at full capacity last year. According to FD's balance sheet, the only current liabilities are accounts payable, which equals $340,000. The only other liability is long-term debt, which equals $810,000. The common equity section is comprised of 500,000 shares of common stock with a book value equal to $2 million and $850,000 of retained earnings. Next year, FD expects its sales will increase by 22 percent. The company's net profit margin is expected to remain at its current level, which is 15 percent of sales. FD plans to pay dividends equal to $0.40 per share. It also plans to issue 60,000 shares of new common stock, which will raise $290,000. Estimate the additional funds needed (AFN) to achieve the forecasted sales next year. Round your answer to the nearest dollar. $

Futuristic Development (FD) generated $2 million in sales last year with assets equal to $4 millian. The firm operated at hul capacity iast year. According to FO's balance sheet, the only current liabilicies are accounts payable, which equals $340,000. The only ohher labblity is tong term debt, which equals $880,000. The common equity section is comprised of 500,000 shares of common stock with a book value equal to $2 millon and $950,000 of retained eamings. Next year, FD oxpects its sales wal increase by 22 percent. The company. net profit margin is expected to remain at its current ievel, which is 15 pertent of sales. FD plans to pay dividends equal to $0.40 per share. It also plans to issue 60,000 shares of new common stock, wheh will rase $290,000. Etimate the additional funds neoded (AFN) to achieve the forecasted sales next year. Round your answer to the nearest dollar. 1