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AFN EQUATION Carlsbad Corporation's sales are expected to increase from million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $2
AFN EQUATION Carlsbad Corporation's sales are expected to increase from million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $2 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable $500,000 of notes payable and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6% and the forecasted retention ratio is 25% Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as s,000,000. Round your answer to the nearest cent. At
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