MARCH 2017Orchid Berhad is planning to expand their business. Currently the company has sales ofRM900,000 and the net income of RM67,500. Orchid Berhad anticipates that their nextyears sales will be increased by RM540,000. The company pays RM27,000 to theshareholders as dividends. Given below is the Statement of the Financial Position forthe year just ended.Orchid BerhadStatement of Financial Position as at December 31, 2016 (in RM)Cash 340,000 A/Cs payable 560,000A/Cs receivables 500,000 Long term debt 740,000Inventories 740,000 Common stock 1,000,000Net fixed assets 1,420,000 Retained earnings 700,000Total assets 3,000,000 Total liabilities & equities 3,000,000Assuming the company is operating at full capacity, determine the additionalfinancing needed for Orchid Berhad for the year of 2017 using:a) AFN Model.b) Pro-forma Statement of the Financial Position.