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SHOW ALL WORK AND FORMULAS IF ASNWERED CORRECTLY I WILL UPVOTE Broussard...

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Finance

SHOW ALL WORK AND FORMULAS IF ASNWERED CORRECTLY I WILL UPVOTE

image Broussard Skateboard's sales are expected to increase by 15% from $7.4 million in 2016 to $8.51 million in 2017 . Its assets totaled $5 million at the end of 2016 . Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016 , current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 55%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar. $ Assume that an otherwise identical firm had $6 million in total assets at the end of 2016. The identical firm's capital intensity ratio (A0*/S0) is than Broussard's; therefore, the identical firm is capital intensive - it would require increase in total assets to support the increase in sales

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