Blue Elk Manufacturing Funnes Needed (AFN) equation

1. The Additional Funds Needed (AFN) equation Blue Ex Manufacturing has the foltowing end-of year batance sheet: The firm is currenty in the process of forncasting sales, asset requirements, and required funding for the coming vear. In the vear that just ended expocts to maintain its long-nun dividend payou rabio of 45W. Suppose Blue Ek Manufacturing's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Elk Manufacturing's expected saies. (Note: Do not round intermediate calculations.) $510,000 $439,500 $612,000 5406,000 When a firm grows, some tiabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate intemally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Bive Eik Manutacturing this year? (Note: Do not round intermediate calculations.) $81,600 $68,000 $54,400 $57,500 In adeition, Bive Elk Manufscturing 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: Agatn, the more o 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 reinain constant. Given the preceding information, Blue Elk Manufacturing is expected to generate 1 from operations that will be added to retoined earnings: (Note: Do not round intermediate calculations.) According to the ANN equetion and projections for Blue Elik Manufacturing, the fiem x AFN is s (Note: Do not round intermediste calculations.)