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

Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million...

80.2K

Verified Solution

Question

Finance

Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $6 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $

Answer & Explanation Solved by verified expert
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

Statistics
1.2K views

6 a Freddy has a lot of cousins So words to Bohemian Rhapsody Draw a...

Biology
1.2K views

Which type of inhibition results from an endproduct inhibiting the initiating enzyme?a. Feedback O b....

Biology
1.2K views

Many viruses consist only of a protein coat surrounding a nucleic acid core If you...

Physics
1.2K views

105 100 g ice at 0 C is dropped into a calorimeter of water equivalent...

Geometry
1.2K views

Given AC bisects LCAB 60 Prove LDAB 120 L DAB A D C B

Basic Math
1.2K views

In Problems 3-6, find the slope msec of the secantline through the two given points...

Calculus
1.2K views

20 COS 57 2 21 sin 57 sin if cos a if cos a 31...

Algebra
1.2K views

Find the reduced row echelon form of this augmented matrix 1 2 0 150 1...

Algebra
1.2K views

E and F be as above The event E UF is A C 1 4...

Algebra
1.2K views

Determine which quadratic equation has tw non real solutions A 2x 12x 18 0 B...

Accounting
1.2K views

Aiden Yoon paid the fire insurance premium of $3,000 for the Yoon Caf on June...

Accounting
1.2K views

Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and...