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Broussard Skateboard's sales are expected to increase by 2 0 % from $ 8 . 2 million in 2 0 1 8 to $ 9
Broussard Skateboard's sales are expected to increase by from $ million in to $ million in Its assets totaled $ million at the end of
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of current liabilities were $ million, consisting of $ of accounts payable, $ of notes payable, and $ of accruals. The aftertax profit margin is forecasted to be Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
Why is this AFN different from the one when the company pays dividends?
I. Under this scenario the company would have a higher level of retained earnings which would increase the amount of additional funds needed.
II Under this scenario the company would have a higher level of retained earnings but this would have no effect on the amount of additional funds needed.
III. Under this scenario the company would have a lower level of retained earnings which would reduce the amount of additional funds needed.
IV Under this scenario the company would have a lower level of retained earnings but this would have no effect on the amount of additional funds needed.
V Under this scenario the company would have a higher level of retained earnings which would reduce the amount of additional funds needed.
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