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The Tigers Inc.'s sales are forecasted to double from $1,000 in 2020 to $2,000 in 2021 (that is, a 100% increase). The 2020 Balance sheet
The Tigers Inc.'s sales are forecasted to double from $1,000 in 2020 to $2,000 in 2021 (that is, a 100% increase). The 2020 Balance sheet for Tigers Inc., is shown here: | |||||||
2020 Balance Sheet | |||||||
Cash | $ 100 | Account payable | $ 100 | ||||
Account receivable | $ 200 | Notes payable | $ 150 | ||||
Inventories | $ 250 | Long-term debt | $ 400 | ||||
Net fixed assets | $ 500 | Common stock | $ 150 | ||||
Retained earnings | $ 250 | ||||||
Total assets | $ 1,050 | Total liabilities and equity | $ 1,050 | ||||
Assume that Tigers' fixed assets were used to 100% capacity and that its current assets were at their proper levels in relation to sales. Tigers' after-tax profit margin (i.e. NI/ Sales) is forecasted to be 7% and its payout ratio to be 50%. What is Tigers' additional funds needed (AFN) for 2021? Round your answer to the nearest dollar. | |||||||
Sales 2020 = | $ 1,000 | ||||||
Sales 2021 = | $ 2,000 | ||||||
NI/Sales = | 7% | ||||||
Payout ratio = | 50% | ||||||
What is Tigers' additional funds needed (AFN) for 2021? Round your answer to the nearest dollar. |
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