AFN equation Broussard Skateboard's sales are expected to increase by 15% from $7.4 million in 2019 to $8.51 million in 2020. Its assets totaled $4 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
AFN equation
Broussard Skateboard's sales are expected to increase by 15% from $7.4 million in 2019 to $8.51 million in 2020. Its assets totaled $4 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 3%, and the forecasted payout ratio is 75%. Use the AFN equation to
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
