2. The additional funds needed (AFN) equation Ant Inc. has the following end-of-year balance sheet: 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, Ant Inc. generated $450,000 net income on sales of $14,500,000. 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 Ant Inc.'s assets are fully utilized. Use the additional funds needed (AFN) formula to determine the increase in total assets that is necessary to support Ant Inc.'s expected sales. $570,000$513,000$484,500$541,500 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 Ant Inc. this year? $76,000$68,400$72,200$64,600 In addition, Ant Inc. 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, Ant Inc. is expected to generate from operations that will be added to retained earnings. According to the AFN formula and projections for Ant Inc., the firm's AFN is