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Broussard Skateboard's sales are expected to increase by 15%from $7.6 million in 2016 to $8.74 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 $450,000 of accruals. The after-tax profit margin isforecasted to be 4%. Assume that the company pays no dividends.Under these assumptions, what would be the additional funds neededfor the coming year? Do not round intermediate calculations. Roundyour answer to the nearest dollar.$Why is this AFN different from the one when the company paysdividends?I. Under this scenario the company would have a lower level ofretained earnings but this would have no effect on the amount ofadditional funds needed.II. Under this scenario the company would have a higher level ofretained earnings which would reduce the amount of additional fundsneeded.III. Under this scenario the company would have a higher levelof retained earnings which would increase the amount of additionalfunds neededIV. Under this scenario the company would have a higher level ofretained earnings but this would have no effect on the amount ofadditional funds needed.V. Under this scenario the company would have a lower level ofretained earnings which would reduce the amount of additional fundsneeded.