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More on AFN equation 2. More on the AFN (Additional Funds Needed) equation Green Caterpillar Garden Supplies Inc. reported sales of $775,000 at the end
More on AFN equation
2. More on the AFN (Additional Funds Needed) equation Green Caterpillar Garden Supplies Inc. reported sales of $775,000 at the end of last year; but this year, sales are expected to grow by 7%. Green Caterpillar Garden Supplies Inc. expects to maintain its current profit margin of 24% and dividend payout ratio of 20%. The firm's total assets equaled $500,000 and were operated at full capacity. Green Caterpillar Garden Supplies Inc.'s balance sheet shows the following current liabilities: accounts payable of $65,000, notes payable of $25,000, and accrued liabilities of $75,000. Based on the AFN (Additional Funds Needed) equation, what is the firm's AFN for the coming year? O -$174,221 O -$134,016 O -$160,819 O -$154,118 A negatively assigned AFN (Additional Funds Needed) value represents: A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth 0 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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