Quantitative Problem 1: Beasley Industries'
sales are expected to increase from $4 million in 2017 to $5
million in 2018, or by 25%. Its assets totaled $2 million at the
end of 2017. Beasley is at full capacity, so its assets must grow
in proportion to projected sales. At the end of 2017, current
liabilities are $800,000, consisting of $160,000 of accounts
payable, $450,000 of notes payable, and $190,000 of accrued
liabilities. Its profit margin is forecasted to be 4%, and its
dividend payout ratio is 50%. Using the AFN equation, forecast the
additional funds Beasley will need for the coming year. Round your
answer to the nearest dollar. Do not round intermediate
calculations.
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