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* |
$102,500 |
Last year's accruals |
$20,000 |
Last year's profit margin = PM |
20.0% |
Target payout ratio |
25.0% |
Select the correct answer.