Question
In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The
In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?
| Last year's sales = S0 | $200,000 | Last year's accounts payable | $50,000 |
| Sales growth rate = g | 40% | Last year's notes payable | $15,000 |
| Last year's total assets = A0* | $160,000 | Last year's accruals | $20,000 |
| Last year's profit margin = PM | 20.0% | Target payout ratio | 25.0% |
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Personal Finance An Integrated Approach
Authors: Bernard J. Winger
4th Edition
0198520972, 9780132696302
