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ACME Corporation's sales are expected to increase from $2 million in 2021 to $3 million in 2022. Its assets totaled $1.5 million at the end
ACME Corporation's sales are expected to increase from $2 million in 2021 to $3 million in 2022. Its assets totaled $1.5 million at the end of 2021. ACME is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, ACME had $150,000 of accounts payable and $150,000 of accrued liabilities. Its profit margin is forecasted to be 5%, and the forecasted retention ratio is 75%. Use the AFN equation to forecast the additional funds ACME will need for the coming year. O 487,500 425,000 455,000 O 515,000 535,000
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