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If a companys sales are expected to increase from $8m in 2017 to $9.2m in 2018. Its total assets = $5m at the end of
If a companys sales are expected to increase from $8m in 2017 to $9.2m in 2018. Its total assets = $5m at the end of 2017. The company is already at full capacity, so its assets would grow at the same rate as projected sales. Spontaneous current liabilities = $0.9m. The after tax profit margin is forecasted to be 6%. Payout ratio = 40%. Using the AFN equation, what is the companys additional funds needed for 2018?
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