Attempts . Keep the Highest 0/2 3. Problem 16.03 Click here to read the book: The AFN Equation AFN EQUATION Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $4 milion at the end of 2016. Carlsbad is at Ml capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current abilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payablet, and $250,000 of accrued abilities. Its profit margin is forecasted to be 6%. 6. Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Write out your answer completely. For example, Smilion should be entered as 5,000,000. Round your answer to the nearest cent. b. Why is this APN different from the one when the company pays dividends? L. Under this scenario the company would have a lower level of retained earnings, which would decrease the amount of additional Punds needed IL Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of additional funds needed. TIL Under this scenario the company would have a higher level of retained earnings, which would reduce the amount of assets needed. IV. Under this scenario the company would have a higher level of spontaneous abities, which would reduce the amount of additional funds needed V. Under this scenario the company would have a lower level of retained earnings, which would increase the amount of additional funds needed. MacBook Pro