Question
A company sales are forecasted to double from $1,000 in 2015 to $2,000 in 2016. balance sheet: Cash$100 Accounts payable$50 Accounts receivable$200 Notes payable$150 Inventories$200
A company sales are forecasted to double from $1,000 in 2015 to $2,000 in 2016.
balance sheet:
Cash$100
Accounts payable$50
Accounts receivable$200
Notes payable$150
Inventories$200
Accruals$50
Net fixed assets $500
Long-term debt$400
Common stock$100
Retained earnings$250
Total assets$1000
Total liabilities and equity$1000
fixed assets were used to only 50% of capacity during 2015.
After-tax is forecasted to be 4% and payout ratio to be 35%.
What is the additional funds needed (AFN) for the coming year?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
