Equation to forecast the company additional funds

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A company's sales were expected to increase by $200,000 from $3.0 million in 1989 to $3.2 million in 1990. Its assets totaled $2.3 million at the end of 1989. At the end of 1989, current liabilities were $1.3 million. The after-tax profit margin was forecasted to be 3.0% and the forecasted payout ratio was 45.0%. Use the AFN capital intensity equation to forecast the company's additional funds needed for 1990 (rounded to the nearest dollar).

Reference no: EM131550921

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