Question
Piri's dive shop had the following 2019 results: Sales = $7,200 Costs = $6,100 Assets = $18,000 Debt = $8,000 Equity = $10,000 Forecasted sales
Piri's dive shop had the following 2019 results:
Sales = $7,200
Costs = $6,100
Assets = $18,000
Debt = $8,000
Equity = $10,000
Forecasted sales for 2020 are $8,500.There are no taxes.Assets and costs are proportional to sales.Debt and Equity are not. The retention rate is 100%. What is the AFN (additional funds needed) in 2020 to support forecasted sales of $8,500? (Hint: Construct the 2020 balance sheet and find the AFN required to make the balance sheet balance.
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Cornerstones of Financial Accounting
Authors: Jay Rich, Jeff Jones
4th edition
978-1337690881, 9781337669450, 1337690880, 1337690899, 1337669458, 978-1337690898
