Cash 1 AP 2 Receivables 15 NP 11 Inv 11 LOC 0 Total CA 27 Acc 5 NFA 24 Total CL 18 Total Assets 51 Long-term Debt 12 Common stock 15 RE 6 Total L + CE 51 Given the above balance sheet and the below...

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Finance

Cash 1 AP 2
Receivables 15 NP 11
Inv 11 LOC 0
Total CA 27 Acc 5
NFA 24 Total CL 18
Total Assets 51 Long-term Debt 12
Common stock 15
RE 6
Total L + CE 51
Given theabove balance sheet and the below info, determine the AFN.
CurrentSales 100
Net income 5
Sales Growth Â Â 15%
Dividends 1

Answer & Explanation Solved by verified expert

3.6 Ratings (640 Votes)

Additional Funds Needed AFN is calculated using the belowformula1whereA0 current level of assets In our case A0 51 Here we assume that the plant is operating at full capacityand that each asset item grows See Answer

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Cash	1	AP	2
Receivables	15	NP	11
Inv	11	LOC	0
Total CA	27	Acc	5
NFA	24	Total CL	18
Total Assets	51	Long-term Debt	12
		Common stock	15
		RE	6
		Total L + CE	51

Given theabove balance sheet and the below info, determine the AFN.

CurrentSales	100
Net income	5
Sales Growth Â Â	15%
Dividends	1