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