Problem 12-01 AFN equation Broussard Skateboard's sales are expected to increase by 25% from $7.8 million in 2016...

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Finance

Problem 12-01
AFN equation
Broussard Skateboard's sales are expected to increase by 25%from $7.8 million in 2016 to $9.75 million in 2017. Its assetstotaled $2 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 4%, and the forecasted payout ratio is 55%. Usethe AFN equation to forecast Broussard's additional funds neededfor the coming year. Round your answer to the nearest dollar. Donot round intermediate calculations.
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Broussards additional funds needed for the coming year Expected Next Year Sales 9750000 After Tax profit Margin After Tax profit Margin Expected Next Year Sales x Profit Margin 9750000 x 400 See Answer

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Problem 12-01AFN equationBroussard Skateboard's sales are expected to increase by 25%from $7.8 million in 2016 to $9.75 million in 2017. Its assetstotaled $2 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 $450,000 of accruals. The after-tax profit margin isforecasted to be 4%, and the forecasted payout ratio is 55%. Usethe AFN equation to forecast Broussard's additional funds neededfor the coming year. Round your answer to the nearest dollar. Donot round intermediate calculations.$