Question
Your boss is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm
Your boss is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year and what is the self supporting growth rate?
Last year's sales = S0 $350, Sales growth rate = g 30%, Last year's total assets = A0* $500, Last year's profit margin= M 5%, Last years accounts payable $40, Last Year's Notes Payable $50, Last year's accrurals $30, Target payout ratio 60%
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