In your internship with LLT Inc. you have been asked to forecast the firm's additional funds...

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Finance

In your internship with LLT Inc. you have been asked toforecast the firm's additional funds needed (AFN) for next year.The firm is operating at full capacity. Data for use in yourforecast are shown below. Based on the AFN equation, what is theAFN for the coming year? (5 points)
Last year's sales = S₀
$200,000
Sales growth rate = g
40%
Last year's total assets = A₀*
$135,000
Last year's profit margin = PM
20.0%
Last year's accounts payable
$50,000
Last year's notes payable
$15,000
Last year's accruals
$20,000
Target payout ratio
25.0%

Answer & Explanation Solved by verified expert

4.4 Ratings (867 Votes)

Last Year Saes 200000 Total Assets 135000 Profit Margin 2000 Retention Ratio 1 Payout Ratio Retention Ratio 1 025 Retention Ratio 075 Spontaneous Current Liabilities Accounts See Answer

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In your internship with LLT Inc. you have been asked toforecast the firm's additional funds needed (AFN) for next year.The firm is operating at full capacity. Data for use in yourforecast are shown below. Based on the AFN equation, what is theAFN for the coming year? (5 points)Last year's sales = S0$200,000Sales growth rate = g40%Last year's total assets = A0*$135,000Last year's profit margin = PM20.0%Last year's accounts payable$50,000Last year's notes payable$15,000Last year's accruals$20,000Target payout ratio25.0%

Last year's sales = S₀	$200,000
Sales growth rate = g	40%
Last year's total assets = A₀*	$135,000
Last year's profit margin = PM	20.0%
Last year's accounts payable	$50,000
Last year's notes payable	$15,000
Last year's accruals	$20,000
Target payout ratio	25.0%