The balance sheet data below pertain to American Pulp and Paper for the recent year ended. In addition, sales were $60 million. For the coming year, management believes that sales will increase by 20% to a total of $72 million. The profit margin is expected to be 5%, and the dividend payout ratio is targeted at 40%. No excess capacity exists, Determine the additional funds needed (AFN) in millions of dollars for the coming year using the Additional Funds Needed. (AFN) Equation. Cash Accounts receivable Inventories Total current assets Fixed assets Total assets Oa10.36 Ob 10.24 040.24 Od-5036 American Pulp and Paper Balance Sheet (Millions of Dollars) $ 3.0 3.0 5.0 $11.0 3.0 $14.0 Accounts payable Notes payable Total current liabilities Long-term debt Common equity Total liabilities and equity $2.0 1.5 $ 3.5 3.0 7.5 $14.0

The balance sheet data below pertain to American Pulp and Paper for the recent year ended. In addition, sales were $60 million. For the coming year, management believes that sales will increase by 20% to a total of $72 million. The profit margin is expected to be 5%, and the dividend payout ratio is targeted at 40%. No excess capacity exists, Determine the additional funds needed (AFN) in millions of dollars for the coming year using the Additional Funds Needed. (AFN) Equation. Cash Accounts receivable Inventories Total current assets Fixed assets Total assets Oa10.36 Ob 10.24 040.24 Od-5036 American Pulp and Paper Balance Sheet (Millions of Dollars) $ 3.0 3.0 5.0 $11.0 3.0 $14.0 Accounts payable Notes payable Total current liabilities Long-term debt Common equity Total liabilities and equity $2.0 1.5 $ 3.5 3.0 7.5 $14.0

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 9P

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