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Carlsbad Corporation's sales are expected to increase from $5million in 2019 to $6 million in 2020, or by 20%. Its assetstotaled $3 million at the end of 2019. Carlsbad is at fullcapacity, so its assets must grow in proportion to projected sales.At the end of 2019, current liabilities are $1 million, consistingof $250,000 of accounts payable, $500,000 of notes payable, and$250,000 of accrued liabilities. Its profit margin is forecasted tobe 7%.Assume that the company pays no dividends. Use the AFN equationto forecast the additional funds Carlsbad will need for the comingyear. Write out your answer completely. For example, 5 millionshould be entered as 5,000,000. Round your answer to the nearestdollar.$ Why is this AFN different from the one when the company paysdividends?Under this scenario the company would have a lower level ofretained earnings, which would increase the amount of additionalfunds needed.Under this scenario the company would have a lower level ofretained earnings, which would decrease the amount of additionalfunds needed.Under this scenario the company would have a higher level ofretained earnings, which would reduce the amount of additionalfunds needed.Under this scenario the company would have a higher level ofretained earnings, which would reduce the amount of assetsneeded.Under this scenario the company would have a higher level ofspontaneous liabilities, which would reduce the amount ofadditional funds needed.