Question
Broussard Skateboard's sales are expected to increase by20% from $7.6million in 2016 to $9.12million in 2017. Its assets totaled $3million at the end of 2016.
Broussard Skateboard's sales are expected to increase by20% from $7.6million in 2016 to $9.12million in 2017. Its assets totaled $3million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000of accounts payable, $500,000of notes payable, and $450,000of accruals. The after-tax profit margin is forecasted to be7%, and the forecasted payout ratio is55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.
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