Question
Fuzzy Button Clothing Company reported sales of $720,000 at the end of last year; but this year, sales are expected to grow by 10%. Fuzzy
Fuzzy Button Clothing Company reported sales of $720,000 at the end of last year; but this year, sales are expected to grow by 10%. Fuzzy Buttonexpects to maintain its current profit margin of 23% and dividend payout ratio of 20%. The firms total assets equaled $400,000 and were operated at full capacity. Fuzzy Buttons balance sheet shows the following current liabilities: accounts payable of $65,000, notes payable of $25,000, and accrued liabilities of $65,000. Based on the AFN (Additional Funds Needed) equation, what is the firms AFN for the coming year?
-$142,474
-$148,410
-$118,728
-$136,537
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