1. The Additional Funds Needed (AFN) equation Green Caterpillar Garden Supplies Inc. has the following end-of-year balance sheet: Green Caterpillar Garden Supplies Inc, Balance Sheet For the Year Ended on December 31 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. in the year that fust ended, Green Caterpillar Garden Supplies Inc- generated $500,000 net income on sales of 513,500,000. The firm expects sales to increase by 168 this coming year and also expects to maintain its long run dividend payout ratso of 30 ?i. Suppose Green Caterpellar Garden Supplies fincis assets are fully utilued. Use the additional funds necoded (Afw) equation to determine the increase in total assets that is necessary to support Green Caterpillar Garden Supplies Incis expected sales. (Note: Do not round intermediate caiculations) $552,000$504,000$480,000$408,000 When a firm qrows, some liabilaes grow spontaneously along with salen. Spontaneous liabilities ore a source of capital that the firm will gerierate internally, so they redoen the need fot external cagital. How much of the total increase in assecs will be supplied by spontaneous liatiltiei for Greien Caterpillar Garden Supplies inc, this year? (Note: Do not rocind intermediate calculations,) $64,000$67,200$7,000$5,400 In addition, Green Caterpiliar Garden Supplies Inc. is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Agaio, the mote a firm generates intermally from its operations, the less it will have to raise enternally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remiain constant. Given the precevling information, Giten Caterpillar Garden Supplies Inc. is expected to generate 5 added to retained earnings. (Note: Do not round intermediate calculations.) Kccording to the A N equatoon and projections lou Green Caterpillar Gardhn supplies Inc., the fiem's Ar N is 5 (Notetiding round intermediate calculatoons:) 1. The Additional Funds Needed (AFN) equation Green Caterpillar Garden Supplies Inc. has the following end-of-year balance sheet: Green Caterpillar Garden Supplies Inc, Balance Sheet For the Year Ended on December 31 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. in the year that fust ended, Green Caterpillar Garden Supplies Inc- generated $500,000 net income on sales of 513,500,000. The firm expects sales to increase by 168 this coming year and also expects to maintain its long run dividend payout ratso of 30 ?i. Suppose Green Caterpellar Garden Supplies fincis assets are fully utilued. Use the additional funds necoded (Afw) equation to determine the increase in total assets that is necessary to support Green Caterpillar Garden Supplies Incis expected sales. (Note: Do not round intermediate caiculations) $552,000$504,000$480,000$408,000 When a firm qrows, some liabilaes grow spontaneously along with salen. Spontaneous liabilities ore a source of capital that the firm will gerierate internally, so they redoen the need fot external cagital. How much of the total increase in assecs will be supplied by spontaneous liatiltiei for Greien Caterpillar Garden Supplies inc, this year? (Note: Do not rocind intermediate calculations,) $64,000$67,200$7,000$5,400 In addition, Green Caterpiliar Garden Supplies Inc. is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Agaio, the mote a firm generates intermally from its operations, the less it will have to raise enternally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remiain constant. Given the precevling information, Giten Caterpillar Garden Supplies Inc. is expected to generate 5 added to retained earnings. (Note: Do not round intermediate calculations.) Kccording to the A N equatoon and projections lou Green Caterpillar Gardhn supplies Inc., the fiem's Ar N is 5 (Notetiding round intermediate calculatoons:)
