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Baxter Company's balance sheet last year was the following amounts as of December 31st: Cash $10 Accounts payable $15 Accounts receivable 40 Accruals 5 Inventory
Baxter Company's balance sheet last year was the following amounts as of December 31st: |
Cash $10 Accounts payable $15 |
Accounts receivable 40 Accruals 5 |
Inventory 50 Short-term debt 20 |
Net property plant 100 Long-term debt 20 |
Common stock 20 |
Retained earnings 120 |
Total assets $200 Total liabilities and equity $200 |
Last year the firm's sales were $2,000, and it had a profit margin of 10 percent and a dividend payout ratio of 60 percent. Baxter operated its property plant at full capacity. The company expects to increase its net sales by 37.5 percent, to $2,750, but the profit margin is expected to fall to 2 percent, and the retained earnings ratio is expected to rise to 55 percent. What is Baxter additional funds needed (AFN) for this year? |
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