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Hey, can you please solve this :) Thanks! Fuzzy Button Clothing Company reported sales of $775,000 at the end of last year; but this year,
Hey, can you please solve this :) Thanks!
Fuzzy Button Clothing Company reported sales of $775,000 at the end of last year; but this year, sales are expected to grow by 10%. Fuzzy Button Clothing Company expects to maintain its current profit margin of 20% and dividend payout ratio of 30%. The firm's total assets equaled $400,000 and were operated at full capacity. Fuzzy Button Clothing Company's balance sheet shows the following current liabilities: accounts payable of $60,000, notes payable of $45,000, and accrued liabilities of $70,000. Based on the AFN (Additional Funds Needed) equation, what is the firm's AFN for the coming year? O -$106,203 -$87,733 O O -$101,585 O -$92,350 A negatively assigned AFN (Additional Funds Needed) value represents: O A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth O A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends O A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirementsStep by Step Solution
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