INSTRUCTIONS: For No. 1, answer as instructed. For No. 2 - 4, show the complete solutions with formula and round-off the final answer in two (2) decimal places. (4 items = Total Score of 50 points). 1. Identify if the following will Increase ( ) or Decrease ( ) or Have No Effect ( ) in AFN, while holding everything else constant: 1.1 Increase in Payout Ratio 1.2 Increase in Capital Intensity Ratio 1.3 Increase in Profit Margin 1.4 Increase in Sales Growth Rate 1.5 Increase in Liabilities 2. Given Previous Year's Figures, solve for Amount of Funds Needed (AFN): Total Assets = Php 2,000 MM Total Sales = Php 3,000 MM, with Growth Target of 10\% Net Income = Php 117.5 MM Dividends = Php 57.5MM Liabilities =A/P+ Accruals =Php200 (increase spontaneously with sales) 3. Last year Jain Technologies had $250 million of sales and $100 million of fixed assets, so its FA/Sales ratio was 40%. However, its fixed assets were used at only 55% of capacity. Now the company is developing its financial forecast for the coming year. As part of that process, the company wants to set its Target Fixed Assets/Sales Ratio at the level it would have had had it been operating at full capacity. What Target FA/Sales Ratio should the company set? 4. Fairchild Garden Supply expects $600 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories =$30.2+0.25 (Sales). All dollars are in millions. What is the projected inventory turnover ratio for the coming year