Question
Noted below is data for ABC, Inc based on last year's results: ABC had assets of $15 million last year; sales were $18 million;
Noted below is data for ABC, Inc based on last year's results: ABC had assets of $15 million last year; sales were $18 million; liabilities that increased spontaneously with sales was 8% of assets; net income was $275,000 of which $120,000 was paid out in the form of dividends. Assuming that sales growth is expected to be 20% this year, calculate the AFN.
Step by Step Solution
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Step: 1
To calculate the Additional Funds Needed AFN for ABC Inc we can use the following formula AFN SSo AS ...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
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