2. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = So $350 Last yr's accounts payable $40 Sales growth rate = g 30% Last yr's notes payable $50 Last year's total assets = A, $360 Last yr's accruals $30 Last year's prof margin = PM 5% Target payout ratio 60% a. $67.0 b. $78.7 c. $63.9 d. $77.9

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
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2. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast
the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the
AFN equation, what is the AFN for the coming year? Dollars are in millions.
Last year's sales = Sp
$350 Last yr's accounts payable
$40
Sales growth rate = g
30% Last yr's notes payable
$50
Last year's total assets =
$360 Last yr's accruals
$30
Last year's prof margin = PM
5% Target payout ratio
60%
a. $67.0
b. $78.7
c. $63.9
d. $77.9
e. $91.1
Transcribed Image Text:2. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = Sp $350 Last yr's accounts payable $40 Sales growth rate = g 30% Last yr's notes payable $50 Last year's total assets = $360 Last yr's accruals $30 Last year's prof margin = PM 5% Target payout ratio 60% a. $67.0 b. $78.7 c. $63.9 d. $77.9 e. $91.1
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