Question
Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's
Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last years sales = $350 Expected this year sales = $455 Last years total assets = $550 Last years profit margin = 5% Last years accounts payable = $40 Last years notes payable = $50 Last years accruals = $80 Target payout ratio =60%
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