Given the following information, if the firm wants to grow sales by 70% next year, and it is operating at 80% capacity, what is the additional funds using the AFN equation? Liabilities and Equity Assets 2023 Cash & sec. 100 Accounts payable & accruals Accounts rec. 300 Notes payable 2023 250 200 Inventories 500 Total CA 900 Total CL 450 L-T debt 600 Common stock 300 Net fixed Assets 700 Retained Earnings 250 Total assets 1600 Total claims 1600 Income Statement 2023 Sales 3000 Less: COGS (60%) 1800 SGA costs (20%) 600 EBIT 600 Interest (at 10%) 80 EBT 520 Taxes (40%) 208 Net income 312 Dividends (20%) 62 Add'n to RE 250 POR 20%
Given the following information, if the firm wants to grow sales by 70% next year, and it is operating at 80% capacity, what is the additional funds using the AFN equation? Liabilities and Equity Assets 2023 Cash & sec. 100 Accounts payable & accruals Accounts rec. 300 Notes payable 2023 250 200 Inventories 500 Total CA 900 Total CL 450 L-T debt 600 Common stock 300 Net fixed Assets 700 Retained Earnings 250 Total assets 1600 Total claims 1600 Income Statement 2023 Sales 3000 Less: COGS (60%) 1800 SGA costs (20%) 600 EBIT 600 Interest (at 10%) 80 EBT 520 Taxes (40%) 208 Net income 312 Dividends (20%) 62 Add'n to RE 250 POR 20%
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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Transcribed Image Text:Given the following information, if the firm wants to grow sales by 70% next year, and it is operating
at 80% capacity, what is the additional funds using the AFN equation?
Liabilities and Equity
Assets
2023
Cash & sec.
100
Accounts payable & accruals
Accounts rec.
300
Notes payable
2023
250
200
Inventories
500
Total CA
900
Total CL
450
L-T debt
600
Common stock
300
Net fixed Assets
700
Retained Earnings
250
Total assets
1600
Total claims
1600
Income Statement
2023
Sales
3000
Less: COGS (60%)
1800
SGA costs (20%)
600
EBIT
600
Interest (at 10%)
80
EBT
520
Taxes (40%)
208
Net income
312
Dividends (20%)
62
Add'n to RE
250
POR
20%
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