how much is the Additional Financing Needed for the entire 4 years (total AFN for the 4-year period)? A Blue Ocean Co. has the following balance sheet:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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how much is the Additional Financing Needed for the entire 4 years (total AFN for the 4-year period)?

A Blue Ocean Co. has the following balance sheet:

Cash                                               P 5,000

Accounts receivable                          3,000

Inventories                                        7,000

Fixed assets                                     45,000

Accounts payable                               5,000

Notes payable                                    10,000

Long-term debt                                  15,000

Common stock                                   25,000

Retained earnings                                5,000

 The company is not operating at full capacity. The sales for the current year is P100,000 and it is expected to increase by P5,000 per year for the next 4 years. The profit margin and the plowback ratio is forecasted to be constant at 5% and 30%, respectively.

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