Question 23 Your firm recorded sales for the most recent year of $10 million generated from an asset base of $7 million, producing a $500,000 net income. Sales are projected to grow at 20%, causing spontaneous liabilities to increase by $200,000. In the most recent year, $200,000 was paid out as dividends, and the current payout ratio will continue in the upcoming years. What is your firm's AFN? $840,000 $200,000 O $960,000 $600,000 Question 24 Calculate the sale-to-cash conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. O 45 days 180 days 60 days O 90 days
Question 23 Your firm recorded sales for the most recent year of $10 million generated from an asset base of $7 million, producing a $500,000 net income. Sales are projected to grow at 20%, causing spontaneous liabilities to increase by $200,000. In the most recent year, $200,000 was paid out as dividends, and the current payout ratio will continue in the upcoming years. What is your firm's AFN? $840,000 $200,000 O $960,000 $600,000 Question 24 Calculate the sale-to-cash conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. O 45 days 180 days 60 days O 90 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 23
Your firm recorded sales for the most recent year of $10 million generated from an asset base of $7 million, producing a
$500,000 net income. Sales are projected to grow at 20%, causing spontaneous liabilities to increase by $200,000. In the most
recent year, $200,000 was paid out as dividends, and the current payout ratio will continue in the upcoming years. What is your
firm's AFN?
$840,000
$200,000
O $960,000
$600,000
Question 24
Calculate the sale-to-cash conversion period based on the following information: average inventories = $120,000; average
receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000.
O 45 days
180 days
60 days
O 90 days
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