17-1 AFN EQUATION Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20 %. Its assets totaled$3 million at the end of 2021. Carlsbad is at fullcapacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%, and the forecasted retention ratio is 30 %. Use the AFN equation to forecast the additional funds Carlsbad will need for the comingyear.

To forecast the additional funds Carlsbad Corporation will need for the coming year using the AFN…

Answered: 17-1 AFN EQUATION Carlsbad…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem 12
QUESTION 2 Transtar Berhad reported sales of RM70,000 in May and RM80,000 in June. The forecast sales for July, August and September are RM90,000, RM100,000, and RM110,000, respectively. The beginning cash balance on July 1 is RM3,000 and the firm wishes to maintain a minimum cash balance of RM5,000 every month. The total long-term liabilities of the company is RM25,000. Given the following data, prepare a cash budget for the months of July, August and September. (1) The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale. (2) The firm receives other income of RM 2,000 per month. (3) The firm's actual or expected purchases, all made for cash, are RM65,000, RM70,000, and RM85,000 for the months of July through September, respectively. (4) Rent is RM5,500 per month. (5) Wages and salaries are 10% of the previous month's sales. (6) The net income is RM30,000. Cash dividends is 20% of the net income…
Aa 29.
A 23. Subject:- finance
Long-Term Financing Needed At year-end 2018, Wallace Landscaping's total assets were $2.37 million, and its accounts payable were $360,000. Sales, which in 2018 were $2.1 million, are expected to increase by 10% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $640,000 in 2018, and retained earnings were $345,000. Wallace has arranged to sell $90,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. a. What was Wallace's total long-term debt in 2018? Do not round intermediate calculations. Round your answer to the…
Ch 17-End-of-Chapter Problems LPK- Financial Planning and Forecasting Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $2 million at the end of 2021. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ eBook What additional funds would be needed if the company's year-end 2021 assets had been $3 million? Assume that all other numbers are the same. Write out your answer completely. For example, 5 million…
Intro Nickelon's free cash flow during the current year is $150 million, which is expected to grow at a constant rate of 5% in the future. The weighted average cost of capital is 11%. Part 1 What is the firm's total corporate value (in $ million)? 0+ decimals Submit
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eBook AFN equation Broussard Skateboard's sales are expected to increase by 20% from $7.2 million in 2019 to $8.64 million in 2020. Its assets totaled $3 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 75%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. Hide Feedback Incorrect Problem Walk-Through Check My Work
at 12% •ssume today is December 31, 2019 Imagine works Inc just paid a dividend of $1.40 per shure at the end of 2019. The dividend is expected to Grow per year for 3 years, after which time it is expected to grow at a constant rate of 3,5%. amually. The company's cost of equity (rs) is 9,5%. Using the dividend Growth model Callowing for nunconstant growth), What should be the Price of the of the company's stock today (December 31, 2019)? per share A
Ee 64.
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