Question: AFN Equation Carter corporation’s sales are expected to increase from $5 billion in 2011 to $6 million in 2012, or by 20%. It’s assets totaled $3 million at the end of 2011. Carter is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2011, 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 5%, and the forecasted retention ratio is 30%. Use AFN equation to forecast the additional funds Carter will need for the coming year.