For the Year Ended on December $31$

$\backslash$table$[[$Assets$,$Liabilities$],[$Current Assets:,Current Liabilities:,,,$],[$Cash and equivalents,$$150,000,$Accounts payable,$$250,000,],[$Accounts receivable,$400,000,$Accrued liabilities,$150,000,],[$Inventories$,350,000,$Notes payable,$100,000,],[$Total Current Assets,$$900,000,$Total Current Liabilities,$$500,000,],[$Net Fixed Assets:,,Long$-$Term Bonds,$1,000,000,],[$Net plant and equipment$($cost minus depreciation$),$$$2,100,000,$Total Debt,$$1,500,000,],[,,$Common Equity,,$],[,,$Common stock,$800,000,],[,,$Retained earnings,$700,000,],[$Total Assets,,Total Common Equity,$$1,500,000,]]$

The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Fuzzy Button Clothing Company generated $$350,000$ net income on sales of $$12,500,000.$ The firm expects sales to Increase by $15\%$ this coming year and also expects to maintain its long$-$run dividend payout ratio of $45\%.$

Suppose Fuzzy Button Clothing Company's assets are fully utilized. Use the additional funds needed $($AFN$)$ equation to determine the increase in total assets that is necessary to support Fuzzy Button Clothing Company's expected sales.

$$450,000$

$$472,500$

$$495,000$

$$427,500$

When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Fuzzy Button Clothing Company this year?

$$ $$57,000$

$$60,000$

$$63,000$

$$66,000$