AFN equationBroussard Skateboard's sales are expected to increase by 25% from $8.4million in 2019 to $10.50 million in 2020. Its assets totaled $4 million at theend of 2019.Broussard is already at full capacity, so its assets must grow at the same rateas 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%, andthe forecasted payout ratio is 40%. Use the AFN equation to forecastBroussard's additional funds needed for the coming year. Enter your answer indollars. For example, an answer of $1.2 million should be entered as$1,200,000. Do not round intermediate calculations. Round your answer tothe nearest dollar.

Given,Additionla fund needed = Increase In assets - Increase in Liability - After-tax profit…

Answered: Broussard Skateboard's sales are…

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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Thomas Company had the following information related to September 2020: 1) Depreciation on the store equipment was $60,000 for the month. 2) Sales of merchandise inventory for the month of September were $1,800,000, of which $1,200,000 was paid in cash and the remaining amount sold on credit. The cost of the merchandise sold was $1,080,000. 3) The next payroll will be $144,000 and will be paid on October 12. This payroll will cover wages earned during the last week of September and the first week of October. 4) The utility bill of $72,000 for the month of September was both received and paid in early October. 5) Thomas sold a company car for a gain of $12,000 on September 22. 6) On September 3, Thomas paid $6,000 for August’s telephone bill. 7) On October 1, Thomas received the September telephone bill, which totaled $12,000. The bill will be paid in mid-October. 8) Wages paid in cash to employees during the month totaled $288,000. This amount included $60,000 paid for work done in…
Thomas Company had the following information related to September 2020: 1) Depreciation on the store equipment was $60,000 for the month. 2) Sales of merchandise inventory for the month of September were $1,800,000, of which $1,200,000 was paid in cash and the remaining amount sold on credit. The cost of the merchandise sold was $1,080,000. 3) The next payroll will be $144,000 and will be paid on October 12. This payroll will cover wages earned during the last week of September and the first week of October. 4) The utility bill of $72,000 for the month of September was both received and paid in early October. 5) Thomas sold a company car for a gain of $12,000 on September 22. 6) On September 3, Thomas paid $6,000 for August’s telephone bill. 7) On October 1, Thomas received the September telephone bill, which totaled $12,000. The bill will be paid in mid-October. 8) Wages paid in cash to employees during the month totaled $288,000. This amount included $60,000 paid for work done in…

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