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What is the firm's AFN and How do I calculate money added to retained earnings? I just need help with the blanks, I've calculated the
What is the firm's AFN and How do I calculate money added to retained earnings?
I just need help with the blanks, I've calculated the previous prompts.
GIVEN:
Given the preceding information, Cold Duck expects to generate from operations that will be added to its existing retained earnings. (Hint: Round your answer to the nearest whole dollar.) According to the AFN equation and projections for Cold Duck Manufacturing, the firm's AFN is The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Cold Duck Manufacturing generated $450,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. Cold Duck Manufacturing generated $450,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. Suppose Cold Duck's assets are fully utilized. Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that Cold Duck will require internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilies for Cold Duck this year? $68,000$54,400$81,600$71,400 retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externally the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant
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