Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Broussard Skateboard's sales are expected to increase by 20% from $8.4 million in 2019 to $10.08 million in 2020. Its assets totaled $3 million at

image text in transcribed

Broussard Skateboard's sales are expected to increase by 20% from $8.4 million in 2019 to $10.08 million in 2020. Its assets totaled $3 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Offshore Finance And State Power

Authors: Andrea Binder

1st Edition

0192870122, 978-0192870124

More Books

Students also viewed these Finance questions

Question

36. Find a c-inverse of the matrix A in Prob. 6.

Answered: 1 week ago

Question

b. Explain how you initially felt about the communication.

Answered: 1 week ago