Question: Company XYZ is projecting its activities for the upcoming year. The company's financial analyst has provided the following relevant financial information:
- Current sales is $2 million.
- Expected sales growth next year is 20%.
- Total Assets at the end of this year is $800,000.
- Accounts Payables at the end of this year is $50,000.
- Accruals at the end of this year is $75,000.
- Current profit margin is 6%.
- The current year's payout ratio is 70%.
Assuming that there is no excess capacity at the end of the current year and that the corresponding ratios remain constant, calculate the Additional Funds Needed (AFN) for Company XYZ next year.