AFN equation

Broussard Skateboard's sales are expected to increase by 15% from $7.8 million in 2019 to $8.97 million in 2020. Its assets totaled $5 million at the end of 2019.

Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 65%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.

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Projected Operating Assets

Berman & Jaccor Corporation's current sales and partial balance sheet are shown below.

	This year
Sales		$	1,000
Balance Sheet: Assets
Cash		$	150
Short-term investments		$	110
Accounts receivable		$	150
Inventories		$	300
Total current assets		$	710
Net fixed assets		$	450
Total assets		$	1,160

Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.

$

Projected Spontaneous Liabilities

Smiley Corporation's current sales and partial balance sheet are shown below.

	This year
Sales		$	10,000
Balance Sheet: Liabilities
Accounts payable		$	1,500
Notes payable		$	2,500
Accruals		$	1,600
Total current liabilities		$	5,600
Long-term bonds		$	2,000
Total liabilities		$	7,600
Common stock		$	2,000
Retained earnings		$	3,000
Total common equity		$	5,000
Total liabilities & equity		$	12,600

Sales are expected to grow by 8% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar.

$

Self-Supporting Growth Rate

Maggie's Muffins Bakery generated $4 million in sales during 2019, and its year-end total assets were $3 million. Also, at year-end 2019, current liabilities were $1 million, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2020, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 7%, and its payout ratio will be 80%. How large a sales increase can the company achieve without having to raise funds externallythat is, what is its self-supporting growth rate? Do not round intermediate calculations. Enter your answer for sales increase in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round the monetary value to the nearest dollar and percentage value to one decimal place.

Sales can increase by $ , that is by %.