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please help with all 1. The Additional Funds Needed (AFN) equation Blue Elk Manufacturing has the following end-of-year balance sheet: The firm is currently in
please help with all
1. The Additional Funds Needed (AFN) equation Blue Elk Manufacturing has the following end-of-year balance sheet: The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just en Blue Elk Manufacturing generated $500,000 net income on sales of $13,500,000. The firm expects sales to increase by 17% this coming year expects to maintain its long-run dividend payout ratio of 35%. Suppose Blue Eik Manufacturing's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Elk Manufacturing's expected sales. (Note: Do not round intermediate calculations,) $459,000$408,000$510,000$561,000 When a firm grows, some liabilities grow spontaneously along with saies, Spontaneous liabilities are a source of capital that the firm will generate intemally, so they reduce the need for external cepkal. How much of the total increase in assets will be supplied by spontanecus liabilities for Blue Eik. Manutacturing this yeac? (Note: Do not reund intermediate calcilations.) $68,000$54,400$1,200$74,800 In adduon, Blun Elk Manufactioring is expectod to generate net income this yeac; The firm will pay out some of its earnings as dividends but will retain the rest for future acset investment. Agan, the more a firm generates intemally from its operabians, the less it will have to rase extemally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant; In add tion, the Elk Manufacturing is expected to generate net income this year. The firm war pay out same of its earnings as alvidends trut will retain the rest for foture ashet investment Again, the more a fitm generates internally from its operationis, the less it will have to raise externally feom the captal markets, Assume that the firm's profit margin and dividend paycut ratio are expected to remain constant. ceven the preceding insormation, wifn Elk Manufocturing is expected to generate s from operations that wiel be abded to retained earningt. (Note-Do nat round intermediate calculatioos ) According to the MIN Equation and projections for B we Ei. Manifacturing, the fimms AFN H 1 (Note: Do not round infermediate coltulations.) Step by Step Solution
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