a)

AFN equation Broussard Skateboard's sales are expected toincrease by 25% from $7.2 million in 2016 to $9.00 million in 2017.Its assets totaled $3 million at the end of 2016. Broussard isalready at full capacity, so its assets must grow at the same rateas projected sales. At the end of 2016, current liabilities were$1.4 million, consisting of $450,000 of accounts payable, $500,000of notes payable, and $450,000 of accruals. The after-tax profitmargin is forecasted to be 7%, and the forecasted payout ratio is70%. Use the AFN equation to forecast Broussard's additional fundsneeded for the coming year. Round your answer to the nearestdollar. Do not round intermediate calculations

b)

Broussard Skateboard's sales are expected to increase by 20%from $8.2 million in 2016 to $9.84 million in 2017. Its assetstotaled $5 million at the end of 2016. Broussard is already at fullcapacity, so its assets must grow at the same rate as projectedsales. At the end of 2016, current liabilities were $1.4 million,consisting of $450,000 of accounts payable, $500,000 of notespayable, and $450,000 of accruals. The after-tax profit margin isforecasted to be 3%, and the forecasted payout ratio is 75%. Whatwould be the additional funds needed? Do not round intermediatecalculations. Round your answer to the nearest dollar.