Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at full capacity and using the data in the table below, forecast Orwell's AFN for the coming year?Last year's sales = S0$365,000Last year's accounts payable$40,000Sales growth (ΔS)$31,000Last year's notes payable$10,000Last year's total assets = A0*$203,000Last year's accruals$10,000Last year's profit margin = PM0.75Target payout ratio0.6

AFN is the amount of additional funding required in form of equity and debt for maintaining growth…

Answered: Forecast Orwell's additional funds…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 3P: Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to...

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Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at full capacity and using the data in the table below, forecast Orwell's AFN for the coming year?

Last year's sales = S₀	$365,000	Last year's accounts payable	$40,000
Sales growth (ΔS)	$31,000	Last year's notes payable	$10,000
Last year's total assets = A₀*	$203,000	Last year's accruals	$10,000
Last year's profit margin = PM	0.75	Target payout ratio	0.6

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