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Use AFN Formula and calculate additional funds needed for Year 20x4E. Assume that a company will grow at 25% next year, and currently a company

Use AFN Formula and calculate additional funds needed for Year 20x4E. Assume that a company will grow at 25% next year, and currently a company is fully utilized its fixed assets. All assets and spontaneous liabilities will grow proportionally with sales. Net profit margin and dividend payout ratio remain the same as that of year 20x3.

Answers with 2 digits after decimal

  1. required increase in Assets
  2. Increase in Spontaneous Liabilities
  3. Increase in Retained earnings
  4. AFN (Using formula)
  5. Without calculation, if a company buy new fixed assets, and distort the formula assumption, AFN will be Ans= (increase/decrease)?
  6. Without calculation, if a company lengthen the number of days to pay to suppliers, AFN will be Ans= (increase/decrease)?
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