Question $1$

CN Railways is North America's fifth largest railway. Use the equation approach and CN$\text{'}$s

financial information for Year $10$ to calculate additional funds needed $($AFN$)$ in Year $11.$

Selected Financial Statement Values and Ratios

CN Railway Company

As of December $31,$ Year $10($$ millions$)$

Total Assets

$$18,924$

Fixed Assets

$16,898$

Assets that Change with

$18,061$

Sales

Total Revenues $($Year $10)6,110$

Total Revenues $($Year $11)6,721$

Change in Revenues

$611$

Total Liabilities

$12,297$

Liabilities that Change with

Sales

$2,134$

Profit Margin

$9\mathrm{.}35\%$

Dividend Payout Ratio $0\%$

$$580$ million

$$965$ million

$$165$ million

$$342$ million