Question
CCC currently has sales of $24,000,000 and projects sales of $32,400,000 for next year. The firm's current assets equal $6,000,000 while its fixed assets are
CCC currently has sales of $24,000,000 and projects sales of $32,400,000 for next year. The firm's current assets equal $6,000,000 while its fixed assets are $5,000,000. The best estimate is that current assets will rise directly with sales while fixed assets will rise by $300,000. The firm presently has $3,000,000 in accounts payable, $1,800,000 in long-term debt, and $6,200,000 in common equity. All current liabilities are expected to change directly with sales. CCC plans to pay $800,000 in dividends next year and has a 4.0% net profit margin.
Using the AFN Formula determine what are the company's additional funds needed for the next year?
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