Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2016 to $10.32...

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Broussard Skateboard's sales are expected to increase by 20%from $8.6 million in 2016 to $10.32 million in 2017. Its assetstotaled $3 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 65%. Usethe AFN equation to forecast Broussard's additional funds neededfor the coming year. Round your answer to the nearest dollar. Donot round intermediate calculations.

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3.6 Ratings (286 Votes)

Additional Funds Needed AFN for the coming year Expected Next Year Sales 10320000 After Tax profit Margin After Tax profit Margin Expected Next Year Sales x Profit Margin 10320000 x 400 412800 See Answer

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