Clayton Industries is planning its operations for next year.
Ronnie Clayton, the CEO, wants you to forecast the firm's
additional funds needed (AFN). Data for use in your forecast are
shown below. Based on the AFN equation, what is the AFN for the
coming year? Dollars are in millions.
Last year's sales = S0 |
$350 |
|
Last yr's accounts payable |
$40 |
Sales growth rate = g |
30% |
|
Last yr's notes payable |
$50 |
Last year's total assets = A0* |
$360 |
|
Last yr's accruals |
$30 |
Last year's prof margin = PM |
5% |
|
Target payout ratio |
60% |