Baxter Video Products' sales are expected to increase for $5 million in 2007 to $6 million in 2008 or by 20%. Its assets totaled $3 million at the end of 2007. Baxter is at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2007, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN formula to forecast Baxter's additional funds needed for the coming year.

Baxter Video Products' sales are expected to increase by 20% from $5 million in 2008 to $6 million in 2009. Its assets totaled $3 million at the end of 2008. Baxter is at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2008, current liabilities were $1 million, consisting of $250,000 of a accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN formula to forecast Baxter's additional funds needed for the coming year.

Baxter Video Products's sales are expected to increase by 20% from $5 million in 2010 to $6 million in 2011. Its assets totaled $3 million at the end of 2010. Baxter is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after- tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN equation to forecast Baxter's additional funds needed for the coming year