(Solved): Fuzzy Button Clothing Company has the following end-of-year balance sheet: The firm is currently ...

Fuzzy Button Clothing Company has the following end-of-year balance sheet: The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Fuzzy Button Clothing Company generated \( \$ 450,000 \) net income on sales of \( \$ 14,500,000 \). The firm expects sales to increase bear and also expects to maintain its long-run dividend payout ratio of \( 45 \% \). Suppose Fuzzy Button's assets are fully utilized. Using the additional funds needed (AFN) equation, the increase in total assets that is necessary to support Fuzzy Button Clothing Company's expected sales is (Hint: Do not round intermediate calculations.) Button this year? (Hint: Do not round intermediate calculations.) \[ \begin{array}{l} \$ 61,200 \\ \$ 72,000 \\ \$ 68,400 \\ \$ 75,600 \end{array} \] of the firm's forecasted net income (as retained earnings) for future asset investment. As the company generates more internal have less to raise externally via the capital markets. Assuming that, next year, Fuzzy Button's net profit margin and dividend payout ratio will be the same as this year's values is expected to generate of additional retained earnings financing. (Hint: Do not round intermediate calculations.) According to the financial forecasts for Fuzzy Button Clothing Company and the AFN equation, next year, the firm will need to raise in additional external financing. (Hint: Do not round intermediate calculations.)