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help as soon as possible please!! The firm is currently in the process of forecasting sales, assec requirements, and reguired funding for the coming yean
help as soon as possible please!!
The firm is currently in the process of forecasting sales, assec requirements, and reguired funding for the coming yean in the yoar that just ended; Creen Caterpiller Garden Supplies Inc; generated 1350,000 net income on sales of 512,500,000, The firm expect sales to increase by 15% thit coming vear and aito expecte to maintain its long-run dividend payout ratig of 40%. Fuppose Green Caterpiliar Garden Suppiles Inciv assets are fuliy utilized. Use the add thanal funds needed (AFN) equstion to deteimine the increase in total absets that Is neconcary to support Green Caterpilar Garden supplies Inei's expected sales, - 5=10,000 - 82 w. 00 8517+00 140,600 total assets that ts necessary to support Green Caterniliar Garden Supplies inci expected sales. $350,000$33,500$1517,300$450,090 When a firm grews, some liabitities graw spontaneousiy along weh sales. Spontane0us llabilies are a saurce of captal that the fath will generate internaliy, so they redsuce the need for extemal canital. Hew much of the total increase in assets will be supplied by spontaseout liabilites for foreen Caterpailar Garden 5upplies Inc, this war? 151,000$169,000172,000360,000 In addition, Green Caterpitiar Garden Sepalles Inei is mpected to gennrate net inicome tiis year, The firm will pay out same of its eamings at Isivdends but wil retein the iest foi future asset investment, Again, the more a firm onnerates internally fram its operatians, the lest it will have to raise externahy from thit capital morkets. Astume that the firm'i profit margin and dividend payout ratie are expected to remtain canstart. Given the preceting iniorimation, Green Cateepilar Garden Supples Inc is expected to generate from operatians that will bee aboded to retained narningt Step by Step Solution
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