Chua Chang & Wu Inc. is planning its operations for nextyear, and the CEO wants you to forecast the firm's additional fundsneeded (AFN). Data for use in your forecast are shown below. Basedon the AFN equation, what is the AFN for the coming year?
| Last year's sales = S0 | $200,000 | | Last year's accounts payable | $50,000 |
| Sales growth rate = g | 40% | | Last year's notes payable | $15,000 |
| Last year's total assets = A0* | $127,500 | | Last year's accruals | $20,000 |
| Last year's profit margin = PM | 20.0% | | Target payout ratio | 25.0% |
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| a. | -$14,820 |
| b. | -$19,000 |
| c. | -$20,520 |
| d. | -$23,180 |
| e. | -$21,280 |
