a)

These are the simplified financial statements for Judd Enterprises.
Income statement	Current	Projected
Sales	na	1,000
Costs	na	720
Profit before tax	na	280
Taxes (25%)	na	70
Net income	na	210
Dividends	na	63
Balance sheets	Current	Projected			Current	Projected
Current assets	100	115		Current liabilities	70	81
Net fixed assets	900	1,080		Long-term debt	400
				Common stock	300
				Retained earnings	230

Refer to the Judd Enterprises financial statements. What is Judd's projected retained earnings under this plan?

b)

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*	$590	Last year's accruals	$30
Last year's profit margin = PM	5%	Target payout ratio	60%

c)

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*	$117,500	Last year's accruals	$20,000
Last year's profit margin = PM	20.0%	Target payout ratio	25.0%