2. what is the amount of change in sales amount based on the 40% growth assumption?

a.

$1,300,000

b.

$400,000

c.

$300,000

d.

none of the choices

3. given in the table below, what is the additional financing needed (AFN) for next year?

Total Assets	800000
Accounts Payables	40000
Accrued Liabilities	20000

a. $1,000,000

B. $130,000

c. $500,000

D. $226,000

4. what is the expected value of the sales growth rate for next year?

	a.	.25 (25%)
	b.	.103 (10.3%)
	c.	.035 (3.5%)
	d.	.229 (22.9%)

5. use the information from the previous questions as repeated in the table below.

Sales	1000000
Net Profit	50000
Total Assets	800000
Accounts Payables	40000
Accrued Liabilities	20000

Calculate the additional financing needed (AFN).

A.		$99,000
B.		$122,500
C.		$155,000
D.		None of the choices

Use the following scenario for the following 5 questions. A chain of flower shops in Houston has been in business 2 years. Last year sales revenues were $1 million with net profit of $50,000. If the economy grows rapidly next year, the owner expects its sales to grow by 40 percent. However, if the economy exhibits average growth, she expects a sales growth of 30 percent. For a slow economic growth scenario, sales are expected to grow next year at a 6 percent rate. If there is a recession, then sales will be 2% growth. The owner has consulted economic analysts who estimate the probability of each scenario occurring to be: rapid growth (.30); average growth (.40), slow growth (.20) and recession (.10). Question 1: What is the forecasted sales amount for next year assuming a rapid growth rate of 40% a. $1,400,000 b. $1,300,000 c. $1,450,000 d. $1,725,000