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Lifestyle Retail's (LR) sales are expected to increase from $8 million in 2022 to $10 million in 2023. Its assets totalled $5 million at the
Lifestyle Retail's (LR) sales are expected to increase from $8 million in 2022 to $10 million in 2023. Its assets totalled $5 million at the end of 2022. LR is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2022, current liabilities were $1.6 million, consisting of $550,000 of accounts payable, $600,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 30%. Use the AFN equation to forecast LR's additional funds needed for the coming year. Enter your
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