1. Video Products' sales are expected to increase by 20% from $5 million in 2010 to $6 million in 2011. Its assets totaled $3 million at the end of 2010. Baxter is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 60%. Use the AFN formula to forecast Baxter's additional funds needed for the coming year. Round your answer to the nearest dollar.$ ________ 2. Baxter Video Products' sales are expected to increase by 20% from $5 million in 2010 to $6 million in 2011. Its assets totaled $3 million at the end of 2010. Baxter is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 55%. Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Round your answer to the nearest dollar.$ ________ Why is this AFN different from the one when the company pays dividends? _________________ I. Under this scenario the company would have a lower level of retained earnings but this would have no effect on the amount of additional funds needed. II. Under this scenario the company would have a higher level of retained earnings which would reduce the amount of additional funds needed. III. Under this scenario the company would have a higher level of retained earnings which would increase the amount of additional funds needed. IV. Under this scenario the company would have a higher level of retained earnings but this would have no effect on the amount of additional funds...