3. The Additional Funds Needed (AFN) equation Cold Duck Manutacturing has the following end-of-yere balance sheet: The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year, In the vear that just ended, Cold Duck Manufacturing generated $350,000 net income on sales of $13,500,000. The firm expects sales to increase by 15% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. Suppose Cold Duck's assets are fully utilized. Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that cold Duck will require: in additional assets: When a firm grows, some liabilicies grow spontaneousty along with sales. Spontaneous liabilities are a source of capital that the firm will generate interna y, so they reduce the need for extemal capitat. How much of the totat increase in assets will be supplied by spontaneous liabilities for Cold Duck this year? $60,000 563,000 $69,000 557,000 In addition, cold Duck Manufacturing is expected to generate net income this year. The firm will pay out some of its earnings as dividends but wil retain the rest for future asset imvestment. Again, the more a ferm generates internalify from its operations, the less it will have to raise externally from the copital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Cold Duck expects to generate from operations that wil be added to its existing fetained earnings, (Hint: Round your anower to the nearest whole dollar) According to the AFN equatian and projections for Cold Duck Manufocturing, the firm's AFN is