Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the

1)

Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.

Last year's sales = S0 $350 Last year's accounts payable $40
Sales growth rate = g 30% Last year's notes payable $50
Last year's total assets = A0* $350 Last year's accruals $30
Last year's profit margin = PM 5% Target payout ratio 60%

Select the correct answer.

a. $80.3
b. $69.5
c. $77.6
d. $72.2
e. $74.9

2)

In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?

Last year's sales = S0 $200,000 Last year's accounts payable $50,000
Sales growth rate = g 40% Last year's notes payable $15,000
Last year's total assets = A0* $122,500 Last year's accruals $20,000
Last year's profit margin = PM 20.0% Target payout ratio 25.0%

Select the correct answer.

a. - $21,000
b. - $20,980
c. - $20,970
d. - $20,990
e. - $21,020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management In The Public Sector Tools Applications And Cases

Authors: Xiaohu Wang

2nd Edition

0765625229, 9780765625229

More Books

Students also viewed these Finance questions

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

What are the important facts related to this situation?

Answered: 1 week ago