3. Problem 9-03 (AFN Equation) eBook Problem Walk-Through AFN Equation Broussard Skateboard's sales are expected to increase by 25% from $7.2 million in 2018 to $9.00 million in 2019. Its assets totaled $5 million at the end of 2018. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%. Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Do not round intermediate calculations. Round your answer to the nearest dollar. Why is this AFN different from the one when the company pays dividends? I. Under this scenario the company would have a lower level of retained earnings which would reduce the amount of additional funds needed. II. Under this scenario the company would have a lower level of retained earnings but this would have no effect on the amount of additional funds needed. III. Under this scenario the company would have a higher level of retained earnings which would reduce the amount of additional funds needed. IV. Under this scenario the company would have a higher level of retained earnings which would increase the amount of additional funds needed. V. Under this scenario the company would have a higher level of retained earnings but this would have no effect on the amount of additional funds needed. -Select- v eBook Problem Walk-Through AFN Equation -Select- ed to increase by 25% from $7.2 million in 2018 to $9.00 million in 2019. Its assets totaled ts assets must grow at the same rate as projected sales. At the end of 2018, current liabilitie ) of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be ions, what would be the additional funds needed for the coming year? Do not round interme - = = = hen the company pays dividends? d have a lower level of retained earnings which would reduce the amount of additional funds uld have a lower level of retained earnings but this would have no effect on the amount of ad puld have a higher level of retained earnings which would reduce the amount of additional fu uld have a higher level of retained earnings which would increase the amount of additional fu Un scthario tre company would have a higher level of retained earnings but this would have no effect on the amount of ac