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5-2 AFN Equation Martel Sporting Goods' sales are expected to increase by 15% from $17 million in 2021 to $19.55 million in 2022. At the end of 2021, current liabilities were $3.04 million, consisting of $1.2 million of accounts payable, $1 million of notes payable, and $840,000 of accruals. The after-tax prof margin is forecasted to be 5%, and the forecasted payout ratio is 30% What would be the additional funds needed if the company's year-end 2021 assets had been $9.35 million? Assume that all other numbers, including sales, are the same as in Problem 5-1 and that the company is operating at full capacity. AFN-S

5-2 AFN Equation Martel Sporting Goods' sales are expected to increase by 15% from $17 million in 2021 to $19.55 million in 2022. At the end of 2021, current liabilities were $3.04 million, consisting of $1.2 million of accounts payable, $1 million of notes payable, and $840,000 of accruals. The after-tax prof margin is forecasted to be 5%, and the forecasted payout ratio is 30% What would be the additional funds needed if the company's year-end 2021 assets had been $9.35 million? Assume that all other numbers, including sales, are the same as in Problem 5-1 and that the company is operating at full capacity. AFN-S

Essentials Of Investments
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
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1. Problem 5-2 AFN Equation Martel Sporting Goods' sales are expected to increase by 15% from $17 million in 2021 to $19.55 million in 2022. At the end of 2021, current liabilities were $3.04 million, consisting of $1.2 million of accounts payable, $1 million of notes payable, and $840,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 30%. What would be the additional funds needed if the company's year-end 2021 assets had been $9.35 million? Assume that all other numbers, including sales, are the same as in Problem 5-1 and that the company is operating at full capacity. AFN-S
Transcribed Image Text:1. Problem 5-2 AFN Equation Martel Sporting Goods' sales are expected to increase by 15% from $17 million in 2021 to $19.55 million in 2022. At the end of 2021, current liabilities were $3.04 million, consisting of $1.2 million of accounts payable, $1 million of notes payable, and $840,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 30%. What would be the additional funds needed if the company's year-end 2021 assets had been $9.35 million? Assume that all other numbers, including sales, are the same as in Problem 5-1 and that the company is operating at full capacity. AFN-S
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