Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2023?Lux Co. has the following balance sheet as of December 31, 2022 Current assets P 600,000 Accounts payable400,000 Accrued liabilitiesNotes payableLong-term debtTotal common equityP 100,000100,000100,000300,000400,000P1.000,000 Total liabilities & equity P1.000.000Fixed assetsTotal assetsIn 2022, the company reported sales of P5 million, net income of P100,000, anddividends of P50,000. The company anticipates its sales will increase 25 percent in2023 and its dividend payout will remain at 50 percent. Assume the company is at fullcapacity, so its assets and spontaneous liabilities will increase proportionately with anincrease in sales.

Additional funds needed(AFN) is the concept used by organizations to determine the amount of funding…

Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2023? Lux Co. has the following balance sheet as of December 31, 2022

Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2023? Lux Co. has the following balance sheet as of December 31, 2022

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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