Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. broussard skateboard's sales are expected to incre

Broussard Skateboard's sales are expected to increase by 20% from $7.6 million in 2016 to $9.12...

80.2K

Verified Solution

Question

Finance

Broussard Skateboard's sales are expected to increase by 20%from $7.6 million in 2016 to $9.12 million in 2017. Its assetstotaled $5 million at the end of 2016. Broussard is already at fullcapacity, so its assets must grow at the same rate as projectedsales. At the end of 2016, current liabilities were $1.4 million,consisting of $450,000 of accounts payable, $500,000 of notespayable, and $450,000 of accruals. The after-tax profit margin isforecasted to be 4%, and the forecasted payout ratio is 70%. Usethe AFN equation to forecast Broussard's additional funds neededfor the coming year. Round your answer to the nearest dollar. Donot round intermediate calculations.

Answer & Explanation Solved by verified expert
4.0 Ratings (447 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

The midpoint of CD is M 3 3 One endpoint is C 0 2 Find...

Biology
1.2K views

Coral reef Describe at least three specific autotrophs species (flora) (include pictures indicating common and scientific names)...

Civil Engineering
1.2K views

Using the rational method, determine the amount of runoff that would occur for a paved parking...

Electrical Engineering
1.2K views

What is continuous monitoring. How can this be applied to conserve energy?

Biology
1.2K views

During a dissection you find a neurone where the cell body is located in the...

Basic Math
1.2K views

Elliot Chambers invests 30 000 in a 1 year CD that earns interest at an...

Algebra
1.2K views

et W be the subspace of R spanned by the vectors 18 8 81 Eles...

Algebra
1.2K views

Question 10 of 23 Step 1 of 2 Consider the following linear equation Answer 2...

Accounting
1.2K views

Transcribed image text

Accounting
1.2K views

The following adjusted trial balance contains the accounts and balances of Cruz Company as of...

Accounting
1.2K views

14.Cul de las siguientes afirmaciones es cierta en relacin con los activos? a.Los activos son...

Finance
1.2K views

(Financial forecasting-discretionary financing needs) The balance sheet of the Boyd Trucking Company (BTC) is shown...