what is the AFN for the coming year?
Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to
Based on the AFN equation, what is the AFN for the coming year?
Last year's sales P200,000
Sales growth rate 40%
Last year's current assets 65,000
Last year's noncurrent assets 70,000
Last year's profit margin 20.0% L
last year's accounts payable P50,000
Last year's notes payable P25,000
Last year's accruals P20,000
Target plowback ratio 75.0%
choices:
-44,000
-50,000
-54,000
-16,000
-40,000
Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the retention ratio from 90% that was used in the past to 50%, which the firm's investment bankers have recommended. Seventy-five percent of the total assets are considered variable. Based on the AN equation, by how much would the AFN for the coming year change if Jonson, Inc. decreased the retention from 90% to the new level? All pesos are in millions.
Last year's sales 300
Sales growth rate 15%
Last year's total assets 500
Last year's profit margin 15.0%
Last year's accounts payable P40.0
Last year's notes payable P10.0
Last year's accruals P20.0
Initial retention ratio 90.0%
choices:
33.6m
-20.7m
20.7m
21.4m
-33.6m
refer to the case of Jonson INc, what would the company's capital intensity ratio be if the company changed the retention ratio to the new level?
choices:
125%
192%
167%
150%
161%
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