Question
Green Caterpillar Garden Supplies Inc. reported sales of $743,000 at the end of last year; but this year, sales are expected to grow by 10%.
Green Caterpillar Garden Supplies Inc. reported sales of $743,000 at the end of last year; but this year, sales are expected to grow by 10%. Green Caterpillarexpects to maintain its current profit margin of 24% and dividend payout ratio of 25%. The firms total assets equaled $400,000 and were operated at full capacity. Green Caterpillars balance sheet shows the following current liabilities: accounts payable of $70,000, notes payable of $40,000, and accrued liabilities of $65,000. Based on the AFN (Additional Funds Needed) equation, what is the firms AFN for the coming year?
-$156,798
-$132,675
-$120,614
-$114,583
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