Forecast broussards additional funds needed for coming year

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Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2013 to $9.2 million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its assets most grow at the same rate as projected sales. At the end of 2013, 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 forecast to be 6%, and the forecast payout ratio is 40%. Use the AFN equation to forecast Broussard’s additional funds needed for the coming year.

Reference no: EM13890232

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