Noted below is data for ABC, Inc based on last year's results: ABC had assets of...
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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. 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.
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Answer rating: 100% (QA)
To calculate the Additional Funds Needed AFN for ABC Inc we can use the following formula AFN SSo AS ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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