Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at only 50% of capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Current Assets may be considered negligible. Last year's sales = S0 $164,000 Last year's accounts payable $40,000 Sales growth (ΔS) $46,000 Last year's notes payable $10,000 Last year's total assets = A0* $268,000 Last year's accruals $10,000 Last year's profit margin = PM 0.00 Target payout ratio 0.1

Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at only 50% of capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Current Assets may be considered negligible. Last year's sales = S0 $164,000 Last year's accounts payable $40,000 Sales growth (ΔS) $46,000 Last year's notes payable $10,000 Last year's total assets = A0* $268,000 Last year's accruals $10,000 Last year's profit margin = PM 0.00 Target payout ratio 0.1

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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Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?
Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities?
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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
Using AFN formula in financial forecasting approach, given the following accounting information assuming that the firm's profit margin remains constant and the company is at full capacity. Sales = 6,000,000 Percentage increase projected for next year sales = 20% Net income this year = 600,000 Retention ratio = 50% Accounts Payabale = 1,100,000 Notes Payable = 180,000 Accrued expenses = 500,000 Projected excess funds available next year is = 200,000 Spontaneous liabilities increase is?
Using AFN formula in financial forecasting approach, given the following accounting information assuming that the firm's profit margin remains constant and the company is at full capacity. Sales = 6,000,000 Percentage increase projected for next year sales = 20% Net income this year = 600,000 Retention ratio = 50% Accounts Payabale = 1,100,000 Notes Payable = 180,000 Accrued expenses = 500,000 Projected excess funds available next year is = 200,000 Total assets amounted to?
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 Sales growth rate 40% Last year's current assets 65,000 Last year's noncurrent assets 70,000 Last year's profit margin 20.0% L last year's accounts payable P50,000 Last year's notes payable P25,000 Last year's accruals P20,000 Target plowback ratio 75.0% choices: -44,000 -50,000 -54,000 -16,000 -40,000 Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the retention ratio from 90% that was used in the past to 50%, which the firm's investment bankers have recommended. Seventy-five percent of the total assets are considered…
Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firm’s profit margin remains constant and the company is at full capacity. · Sales this year is P6,000,000· Percentage increase projected for next year sales = 20%· Net income this year amounts to P600,000· Retention ratio = 50%· Accounts payable = P1,100,000· Notes payable = P180,000· Accrued expenses = P500,000· Projected excess funds available next year is determined to be P200,000 Questions: 1. Determine the spontaneous liabilities increase. 2. How much is the increase in Retained Earnings? 3. How much is the total assets?
Chua Chang & Wu 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 = So $200,000 Last year's accounts payable $50, 000 Sales growth rate = g 40% Last year's notes payable $15,000 Last year's total assets = A0 $127,500 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0% a. - $19,000 b. -$11,000 c. - $25,571 d. -$7,000 e. - $25,000
A company expects sales of $420 million next year assuming a 20% increase from the previous year. The firm anticipates $29.17 million in retained earnings after taxes and dividends have been paid, assuming that $1 million in depreciation expense have been deducted. Working capital is expected to represent 40% of change in sales. Required: Determine the amount of surplus (or deficit) in funds. k (INPUT YOUR ANSWER IN K, ROUNDED TO 2 DECIMAL PLACES. FOR EXAMPLE: 1.23. USE THE MINUS SIGN TO INDICATE A NEGATIVE ANSWER. FOR EXAMPLE: -1.23)
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $9.2 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $7.2 million next year. Assets Current assets Fixed assets Total assets Liabilities and Equity Additional funds needed $ 720,000 Current liabilities 4,800,000 Long-term debt Equity $5,520,000 Total liabilities and equity $ 938,400 1,900,000 2,681,600 $5,520,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.)
Chua Chang & Wu 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? $200,000 40% $127,500 20.0% Last year's sales = So Sales growth rate=g Last year's total assets = Ao Last year's profit margin = PM -$11,000 O O O O O a. b.-$25,571 c.-$7,000 d.-$25,000 e. -$19,000 Last year's accounts payable Last year's notes payable Last year's accruals Target payout ratio $50,000 $15,000 $20,000 25.0%

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Last year's sales = S₀	$164,000	Last year's accounts payable	$40,000
Sales growth (ΔS)	$46,000	Last year's notes payable	$10,000
Last year's total assets = A₀*	$268,000	Last year's accruals	$10,000
Last year's profit margin = PM	0.00	Target payout ratio	0.1