Equation to forecast broussard additional funds

Assignment Help Financial Management

Reference no: EM131920329

AFN equation

Broussard Skateboard's sales are expected to increase by 20% from $8.4 million in 2016 to $10.08 million in 2017. Its assets totaled $4 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 65%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.

Reference no: EM131920329

Questions Cloud

Assume that any expenditures or revenues : Assume that any expenditures or revenues are realized at the end of their assigned years. Show your work for partial credit.

What is the main purpose of the argument : Please find an argument to analyze. Be creative! Some suggestions are to use a commercial, letter to the editor (or op/ed piece).

Write reply to post related to cipher system : Write reply to post with 2 APA format references - created a cipher system using 26 wheels with the alphabet randomly scattered on each wheel

Would the firm temporarilyshut down in the short run : Would the firm temporarilyshut down in the short run? Would the firm permanently exit in the long run, if market conditions stayed the same?

Equation to forecast broussard additional funds : Use the AFN equation to forecast Broussard's additional funds needed for the coming year.

Discuss how nurses use professional communication skills : Discuss how nurses use professional communication skills to develop a therapeutic relationship with patients.

Prepare the journal entries for record income tax expense : Prepare the journal entries for record income tax expense, deferred income tax, and income tax payable for the year 2013 and 2012

How the genogram might help you address the needs : Explain how the genogram you created might help you address the needs of the Hernandez family. Support your Assignment with specific references to the resources

What is the account break even quantity-cash break even : What is the account break even quantity? What is the cash break even? What is the financial break even?

User Account

All Pages