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The ACME Toy Company has the following information. Current Next Year Sales $ 10,000,000 $ 12,000,000.00 Current Assets $ 5,000,000 Fixed Assets $ 6,000,000 Net
The ACME Toy Company has the following information. Current Next Year Sales $ 10,000,000 $ 12,000,000.00 Current Assets $ 5,000,000 Fixed Assets $ 6,000,000 Net Profit Margin 10% (After taxes) Accounts Payable $ 2,000,000 Long Term Debt $ 5,000,000 Stock $ 2,500,000 Retained Earnings $ 1,500,000 Dividends $ 750,000 Fixed Assets will increase $300,000 next year. Long Term Debt will remain the same, with no increase in Stock. Currrent Assets, Accounts Payable will rise by the percentage increase in Sales. Part a. - What are ACME's total financing needs (Total Assets) Part b.- What are ACME's Discretionary Financing Needs (DFN)
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