Chachagogo, Inc. is planning its operations for next year, and 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?   Last year’s sales                             P200,000          Last year's accounts payable    P50,000 Sales growth rate                           40%                 Last year's notes payable      P25,000 Last year’s current assets               P65,000            Last year's accruals                  P20,000 Last year’s noncurrent assets          P70,000            Target plowback ratio                       75.0% Last year’s profit margin                       20.0%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 7P
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Chachagogo, Inc. is planning its operations for next year, and 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?

 

Last year’s sales                             P200,000          Last year's accounts payable    P50,000

Sales growth rate                           40%                 Last year's notes payable      P25,000

Last year’s current assets               P65,000            Last year's accruals                  P20,000

Last year’s noncurrent assets          P70,000            Target plowback ratio                       75.0%

Last year’s profit margin                       20.0%

 
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