Suppose Cold Duck's assets are fully utilized. Using the additional funds needed $($AFN$)$ equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that Cold Duck will require in additional assets.

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 Cold Duck this year?

$$69,000$

$$66,000$

$$60,000$

$$51,000$

In addition, Cold Duck Manufacturing 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. Again, the more a firm generates internally from its operations, the less it will have to raise externally fro the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant.

Given the preceding information, Cold Duck expects to generate earnings. $($Hint: Round your answer to the nearest whole dollar.$)$ from operations that will be added to its existing retained

According to the AFN equation and projections for Cold Duck Manufacturing, the firm's AFN is

Cold Duck Manufacturing Balance Sheet For the Year Ended on December $31$

$\backslash$table$[[$Assets$,,$Liabilities,$],[$Current Assets:,,Current Liabilities:,$],[$Cash and equivalents,$$150,000,$Accounts payable,$$250,000$