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 25% from $8.6 million in 2016 to $10.75...

90.2K

Verified Solution

Question

Finance

Broussard Skateboard's sales are expected to increase by 25%from $8.6 million in 2016 to $10.75 million in 2017. Its assetstotaled $4 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 6%, and the forecasted payout ratio is 55%. Whatwould be the additional funds needed? Do not round intermediatecalculations. Round your answer to the nearest dollar.

Answer & Explanation Solved by verified expert
4.0 Ratings (776 Votes)
2016 Sales 8600000 Total Assets 4000000 Spontaneous Current Liabilities Accounts Payable Accruals Spontaneous Current Liabilities 450000 450000 Spontaneous Current Liabilities 900000    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

Mechanical Engineering
1.2K views

Your task is to take the below code, and insert comments (using the “%” symbol) next...

General Management
1.2K views

What are the export strategies regarding product direct or indirect?Explain international business subject and please i need...

Physics
1.2K views

3 A ray of light travelling in air is incident on a face of a...

Physics
1.2K views

The angle of contact does not depend upon 1 Temperature 3 Cohesive force 2 Soluble...

Geometry
1.2K views

What is the formula for finding the surface area of a triangular prism Explain why...

Basic Math
1.2K views

Chapter 9 The tolerance of position to control coaxiality may apply at choose your answer...

Basic Math
1.2K views

In the past month, Laura rented 4 video games and 6 DVDs. The rental price...

Algebra
1.2K views

17 is the cost imposed by the court on a judgement in a suit defended...

Accounting
1.2K views

Physically locking up assets and electronically securing other assets and information is required by the...

Accounting
1.2K views

Data concerning three of Kilmon Corporations activity cost pools appear below: ...

Accounting
1.2K views

The salespeople at Coronado, a notebook manufacturer, commonly pressured operations managers to keep costs down...

Accounting
1.2K views

explain the cash inflows and outflows of a business by discussing the main activities involved...