Assume (1) that NWC was operating at full capacity in 2008 with respect to all assets, (2) that all assets must grow at the same rate as sales, (3) that accounts payable and accrued liabilities also will grow at the same rate as sales, and (4) that the 2008 profit margin and dividend payout will be...

NWC will need 1809 million Here is the AFN ...

Assume (1) that NWC was operating at full capacity in 2008 with respect to all assets, (2)

Question:

Assume (1) that NWC was operating at full capacity in 2008 with respect to all assets, (2) that all assets must grow at the same rate as sales, (3) that and accrued liabilities also will grow at the same rate as sales, and (4) that the 2008 profit margin and payout will be maintained. Under those conditions, what would the AFN equation predict the company’s financial requirements to be for the coming year?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...