(Financial forecasting?) Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has been in business for only 1? year, but its CFO predicts that the? firm's operating? expenses, current? assets, net fixed? assets, and current liabilities will remain at their current proportion of sales.

Last year Zapatera had ?$11 million in? sales, and net income of ?$1.1 million. The firm anticipates that next? year's sales will reach ?$13.8 ?million, with net income rising to $1.21million. Given its present high rate of? growth, the firm retains all its earnings to help defray the cost of new investments.

Estimate? Zapatera's financing requirements? (that is, total? assets) for 2014 and its discretionary financing needs? (DFN).

Current assets Net fixed assets Total Accounts payable Long-term debt Total liabilities Common stock Paid-in capital Retained earnings Common equity Total BALANCE SHEET 12/31/2013 $2,750,000 6,050,000 $8,800,000 LIABILITIES AND OWNER'S EQUITY $2,750,000 1,400,000 $4,150,000 1,000,000 2,550,000 1,100,000 4,650,000 $8,800,000 OF SALES 25% 55% 25% NA NA NA