In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. 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 = S0 $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* $120,000 Last year's accruals $20,000 Last year's profit margin = PM 20.00% Target payout ratio 25.00% Select the correct answer. a. - $21,850 b. - $21,900 c. - $22,100 d. - $22,000 e. - $21,950
In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. 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 = S0 $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* $120,000 Last year's accruals $20,000 Last year's profit margin = PM 20.00% Target payout ratio 25.00% Select the correct answer. a. - $21,850 b. - $21,900 c. - $22,100 d. - $22,000 e. - $21,950
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
Related questions
Question
| In your internship with Lewis, Lee, & Taylor Inc. you have been asked to |
|||||
| Last year's sales = S0 | $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* | $120,000 | Last year's accruals | $20,000 | ||
| Last year's profit margin = PM | 20.00% | Target payout ratio | 25.00% | ||
| Select the correct answer. | |||||
|
|
a. - $21,850 | ||||
| b. - $21,900 | |||||
| c. - $22,100 | |||||
| d. - $22,000 | |||||
| e. - $21,950 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education