33)

Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year (in millions of dollars)?

Last yr's sales = S0	$350		Last yr's accounts payable	$40
Sales growth rate = g	30%		Last yr's notes payable	$50
Last yr's total assets = A*	$580		Last yr's accruals	$30
Last yr's prof margin = PM	5%		Target payout ratio	60%