Calculate additional funds needed

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Reference no: EM1352902

Year Ended - Balance Sheet ($1,000s)

Cash

20

Accounts Payable

20

Accounts Receivable

20

Notes Payable

40

Inventory

20

Long Term Debt

80

Fixed Assets

180

Common Stock

80

Retained Earnings

20

Total Assets

240

Total Liabilities and Equity

240

Sales for the year just ended were $400, and fixed assets were used at 80% of capacity, but its current assets were at optimal levels. Sales are expected to grow by 10% next year, the profit margin is 5% and the dividend payout ratio is 60%. How much additional funds (AFN) will be needed?

Reference no: EM1352902

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