Reference no: EM133253531

Futuristic Development (FD) generated $2 million in sales last year with assets equal to $5 million. The firm operated at full capacity last year. According to FD's balance sheet, the only current liabilities are accounts payable, which equals $420,000. The only other liability is long-term debt, which equals $810,000. The common equity section is comprised of 400,000 shares of common stock with a book value equal to $3 million and $770,000 of retained earnings. Next year, FD expects its sales will increase by 18 percent. The company's net profit margin is expected to remain at its current level, which is 12 percent of sales. FD plans to pay dividends equal to $0.50 per share. It also plans to issue 70,000 shares of new common stock, which will raise $555,000. Estimate the additional funds needed (AFN) to achieve the forecasted sales next year. Round your answer to the nearest dollar.