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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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