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Your firm recorded sales for the most recent year of $10 million generated from an asset...

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. Current year accounts payable and accrued liabilities provided spontaneously generated funds of $200,000. Sales are projected to grow at 20%. 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?

      
$200,000

      
$600,000

      
$1,000,000

      
$1,200,000

      
$1,400,000

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