Question 2: Gladiator AFN (By Equation Method) [typo corrected in red] Gladiator Ltd operates in a similar business to Vigoroo Ltd; and Gladiator's chief financial officer is at lunch with her CEO, who suddenly asks the question: \"What additional funding would we require at Gladiator, if we were able to increase our sales by 40 percent in competition with Vigoroo?\" The CFO knows that Gladiator profit margin is \8, and that sales for the year ending the \\( 31^{\\text {t }} \\) August 20242023 are \\( \\$ 19,500,000 \\), and that the firm's fixed assets are operating at \90 capacity. The firm's dividend payout ratio is \50. The CFO also has a printout of the 2023 balance sheet with her: Required The CFO needs to use the equation method to quickly calculate Gladiator' AFN. Assume that you are this person and that this is your task (a) What amount of non-spontaneous external funds will be needed during the year ending \\( 31^{2} \\) August 2024? [8 marks] (b) Distribute the AFN you calculated in part (a) (ie state what funds are raised from which sources) according to the following restrictions on Gladiator Ltd and preferences: - Total debt/total assets may not increase above \58 - The current ratio (current assets/current liabilities) may not drop below 1.3 - Raising new debt is preferred by Gladiator Ltd to raising new equity - Increasing notes payable is preferred by Gladiator Ltd to raising new long-term debt [8 marks] (c) What amount of non-spontaneous external funds will be needed during the year ending \\( 31^{2} \\) August 2024 if Gladiator Ltd believes its profit margin will be 12 percent and if it sets its dividend payout ratio at 60 percent? What percentage change is this in AFN from part (a)? [4 marks]