Chapter 16 Exereise TTo0 Based on the following information for Stone Roses Co., what is its AFN for 2018 if sales are projected to grow by 40%? Will the company have a deficit or a surplus in fund? Use the percentage or sales approach and assume 80% capacity usage for fixed assets and 60% for the dividend payout ratio. Stone Roses Co. Balance Sheet as of Dec. 31, 2017 Assets Liabilities and Equity S150 $10 A/P and other accruals Cash Accounts receivable Inventory Total current assets Net fixed assets 30 Notes payable 120 $240 350 380 90 Total current liabilities S160 Long-term debt 900 Common stock Retained earnings $1060 Total liabilities and equity Total assets Stone Roses Co. Income Statement for 2017 Sales Variable costs Fixed costs EBIT Interest EBT Taxes (40%) Net income $600 300 200 $100 20 S48