AFN Equation

Broussard Skateboard's sales are expected to increase by 15%from $7.4 million in 2016 to $8.51 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 5%. Assume that the company pays no dividends.Under these assumptions, what would be the additional funds neededfor the coming year? Do not round intermediate calculations. Roundyour answer to the nearest dollar.
$

Why is this AFN different from the one when the company paysdividends?
I. Under this scenario the company would have ahigher level of retained earnings but this would have no effect onthe amount of additional funds needed.
II. Under this scenario the company would have alower level of retained earnings which would reduce the amount ofadditional funds needed.
III. Under this scenario the company would have alower level of retained earnings but this would have no effect onthe amount of additional funds needed.
IV. Under this scenario the company would have ahigher level of retained earnings which would reduce the amount ofadditional funds needed.
V. Under this scenario the company would have ahigher level of retained earnings which would increase the amountof additional funds needed.
-Select-IIIIIIIVV