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Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million...

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Accounting

Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $4 million at the end of 2021.
Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000
of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio
is 40%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely, For example, 5 million
should be entered as 5,000,000. Round your answer to the nearest dollar.
$
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