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Luster Lighting Corporation expects its sales to increase by 30% from its current $4 million. The company is currently at full capacity. The assets/sales ratio
Luster Lighting Corporation expects its sales to increase by 30% from its current $4 million. The company is currently at full capacity. The assets/sales ratio is 0.4 and the spontaneously generated fund/sales ratio is 0.15. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast the additional funds Luster Lighting will need for the coming year.
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