Assignment Corporate Valuation and Financial Planning to Assignment empts 2 Keep the Highest 2/4 The Additional Funds Needed (AFN) equation reen Moone Industries has the following end-of-year balance sheet: Green Moose Industries Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets Current Liabilities: Cash and equivalents $150,000 Accounts payable $250.000 Accounts receivable 400,000 Accrued liabilities 150.000 Inventores 350.000 Notes payable 100.000 Total Current Assets 5900.000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bondt 1.000.000 Net plant and equipment $2.100.000 Total Debt 51.500.000 cost minus deprecation) Common Equity Common stock 800,000 Retained emings 700.000 Tota Common Equity SI 500.000 53.000.000 Tota! Labies and Equity $3.000.000 The che process of internet wirement and cared funding on vear in the ore Industri pecat 5-50 000 of $2.500.000 The Tum Det er helt 'tong-run Payout 304 520 STRUT kecemate 1.250 satte that a *** 3,000,000 Total Libes wyd Equity $3.000.000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Green Moose Industries generated $450,000 net income on sales of $13,100,000. The firm expects sales to increase by 17% this coming year and also expects to maintain a long-run dividend payout ratio of 30%. Suppose Green Moose's assets we fully utilized. Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that Green Moose will require in additional assets, When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous la internally, so they reduce the need for external capital. How much of the total increase in Moose this year? $535,500 fource of capital that the firm well generate 5459,000 supplied by spontaneous habiticies for Green $561,000 O $68,000 $510.000 $61.200 574,000 $71,400 In addition Green Moose Industries expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future investment. Again, the more a firm generates internally from its operations, the foss it will have to raise externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant From operations that will be added to retained Given the preceding information Green Moore expects to generate samninga. (Hint Round your answer to the nearest whole della According to the AFN ecuation and projections for Green Moon Industne them Gande I NON Save & Continue Chitinunua
