Baxter Video Products sales are expected to increase from $5 million in 2007 to $6 million in 2008 or by 20%.. Its assets totaled $3 million in 2007. Baxter is at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2007, 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 pay out ratio is 70%, Use the AFN formula to forecast Baxter's additional funds needed for the coming year.