Broussard Skateboard's sales are expected to increase by 15% from $7.8 million in 2018 to $8.97...

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Broussard Skateboard's sales are expected to increase by 15%from $7.8 million in 2018 to $8.97 million in 2019. Its assetstotaled $2 million at the end of 2018.
Broussard is already at full capacity, so its assets must grow atthe same rate as projected sales. At the end of 2018, currentliabilities were $1.4 million, consisting of $450,000 of accountspayable, $500,000 of notes payable, and $450,000 of accruals. Theafter-tax profit margin is forecasted to be 6%, and the forecastedpayout ratio is 75%. Use the AFN equation to forecast Broussard'sadditional funds needed for the coming year. Enter your answer indollars. For example, an answer of $1.2 million should be enteredas $1,200,000. Do not round intermediate calculations. Round youranswer to the nearest dollar.

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Additional Funds Needed AFN for the coming year Expected Next Year Sales 8970000 After Tax profit Margin After Tax profit Margin Expected Next Year Sales x Profit Margin 8970000 x 6 538200 See Answer

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Broussard Skateboard's sales are expected to increase by 15%from $7.8 million in 2018 to $8.97 million in 2019. Its assetstotaled $2 million at the end of 2018.Broussard is already at full capacity, so its assets must grow atthe same rate as projected sales. At the end of 2018, currentliabilities were $1.4 million, consisting of $450,000 of accountspayable, $500,000 of notes payable, and $450,000 of accruals. Theafter-tax profit margin is forecasted to be 6%, and the forecastedpayout ratio is 75%. Use the AFN equation to forecast Broussard'sadditional funds needed for the coming year. Enter your answer indollars. For example, an answer of $1.2 million should be enteredas $1,200,000. Do not round intermediate calculations. Round youranswer to the nearest dollar.