Problem 12 1 AN equation Broussard Skateboard's sales are expected to increase by 25 from $8 8 million in 2016 to $11 00 million in 2017 Its assets totaled $4 million at the end of 2016 Broussard is already at full capacity, so its assets must grow at the same rate as projected sales At the end of 2016, current liabilities were $1 4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals The after tax profit margin is forecasted to be 4 , and the forecasted payout ratio is 55 Use the AF equation to forecast Broussard's additional funds needed for the coming year Round your answer to the nearest dollar Do not round intermediate calculations 590200 Broussard Skateboard's sales are expected to increase by 25 from $8 8 million in 2016 to $11 00 million in 2017 Its assets totaled $4 million at the end of 2016 Broussard is already at full capacity, so its assets must grow at the same rate as projected sales At the end of 2016 , current liabilities were $1 4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals The after tax profit margin is forecasted to be 4 , and the forecasted payout ratio is 55 Use the AFN equation to forecast Broussard's additional funds needed for the coming year Round your answer to the nearest dollar Do not round intermediate calculations

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 03, 2024

Problem 12-1 AN equation Broussard Skateboard's sales are expected to increase by 25% from $8.8 million in 2016 to $11.00 million in 2017. Its assets

Problem 12-1 AN equation Broussard Skateboard's sales are expected to increase by 25% from $8.8 million in 2016 to $11.00 million in 2017. Its assets totaled $4 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 55%. Use the AF equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations. 590200 image text in transcribed

Broussard Skateboard's sales are expected to increase by 25% from $8.8 million in 2016 to $11.00 million in 2017 . Its assets totaled $4 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016 , current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations