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* $135,000 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0% Select the correct answer. a. - $15,940 b. - $16,000 c. - $16,060 d. - $16,030 e. - $16,090
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* $135,000 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0% Select the correct answer. a. - $15,940 b. - $16,000 c. - $16,060 d. - $16,030 e. - $16,090
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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* | $135,000 | Last year's accruals | $20,000 |
| Last year's profit margin = PM | 20.0% | Target payout ratio | 25.0% |
Select the correct answer.
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