For the next fiscal$$ year, you forecast net income of $$$$50$ comma $000$ and ending assets of $$$$500$ comma $000.$ Your$$ firm's payout ratio is $10\mathrm{.}0\%.$ Your beginning$$ stockholders' equity is $$$$300$ comma $000$ and your beginning total liabilities are $$$$120$ comma $000.$ Your$$ non$-$debt liabilities such as accounts payable are forecasted to increase by $$$$10$ comma $000.$ What is your net new financing needed for next$$ year?

The Tax Cuts and Jobs Act of $2017$ temporarily allowed$100\%$ bonus depreciation$($effectively expensing capital$$ expenditures$).$ However, we will still include depreciation forecasting in this chapter and in these problems.

Question content area bottom

Part $1$

The net financing required will be $$$