Question
For the next fiscalyear, you forecast net income of $51,800 and ending assets of $ 502,400 Yourfirm's payout ratio is 9.7 %. Your beginningstockholders' equity
For the next fiscalyear, you forecast net income of $51,800 and ending assets of $ 502,400
Yourfirm's payout ratio is 9.7 %.
Your beginningstockholders' equity is $ 297,900 and your beginning total liabilities are $119,700
Yournon-debt liabilities such as accounts payable are forecasted to increase by $9,700.
What is your net new financing needed for nextyear?
The Tax Cuts and Jobs Act of 2017 temporarily allows100% bonus depreciation(effectively expensing capitalexpenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
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