Afn equation to forecast the additional funds carlsbad

Assignment Help Financial Management

Reference no: EM131838074

AFN EQUATION Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $3 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 accured liabilities. Its profit margin is forecasted to be at 3%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year.

Reference no: EM131838074

Questions Cloud

Discuss the falsifying any document or record : Discuss the Falsifying any document or record. Base your posting on your relationship with the unethical person and any risk involved in whistle blowing.

According to the expectation theory : According to the expectation theory, calculate the interest rate on a two-year bond and the interest rate on a three-year bond.

What is the root mean square velocity : What is the root mean square velocity of the F2 molecule at 320 K? What is the most probable velocity of the HCl molecule at 281 K?

Explain the project management concept of triple constraints : Explain the project management concept of triple constraints. What is the applicability of each of these concepts to a healthcare facility project

Afn equation to forecast the additional funds carlsbad : Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year.

Height of a column of the liquid metal alloy : What is the height of a column of the liquid metal alloy that is supported by a pressure difference of 0.440 atm?

Write the program goals and objectives section : Disect each goal into objectives indicating the direction of change, area of change, target population, degree of change, and time frame.

Larger role in cooling the liquid water : The specific heat capacity of ice is Cs,ice = 2.09 J/g·°C and the heat of fusion of ice is 6.02 kJ/mol. When a small ice cube at -10 °C is put into a cup

Identify and describe an injury condition or disease : Identify and describe an injury, condition or disease associated with the abdomen that has not been featured in prior discussion board postings

User Account

All Pages