Forecast the firm additional funds needed

Assignment Help Finance Basics
Reference no: EM131893897

In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?

Last year's sales = S0                          $200,000

Last year's accounts payable       $50,000

Sales growth rate = g                     40%

Last year's notes payable           $15,000

Last year's total assets = A0*       $135,000

Last year's accruals                       $20,000

Last year's profit margin = PM        20.0%

Target payout ratio                        25.0%

Reference no: EM131893897

Questions Cloud

Management of risk and returns : Three major concepts you learned in this course and explain how you will utilize them in your current or a future position.
True regarding probability distributions : Which of the following is true regarding probability distributions?
What you have done to keep ed away so you could reconfigure : Now it's your turn to think outside of the box. What would you have done to keep Ed away so you could reconfigure the network?
Calculate the betas of stock x and y : Calculate the betas of stock X and Y? Also calculate the beta of the market?
Forecast the firm additional funds needed : In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year.
Investments can be diversified away under right conditions : Which type of risk that is associated with investments can be diversified away under the right conditions?
What is the project payback period : Worthington Inc. is considering a project that has the following cash flow data. What is the project's payback period?
Write a one-page memo to marathon about the pros of approach : Read the following Case Study and answer the questions at the end in paragraph form. Write a one-page memo to Marathon about the pros and cons of this approach.
Develop problem-solving skills that generate idea creation : Develop problem-solving skills that generate idea creation, and apply them to everyday personal and professional experience.

Reviews

Write a Review

Finance Basics Questions & Answers

  Show items considered capital expenditures for the new

show items considered capital expenditures for the new business startup.do research to evaluates costs of these capital

  Compare the traditional ira with the roth ira

Compare the traditional IRA with the Roth IRA

  Physical movement of goods and service

The physical flow, the physical movement of goods and service. Please Explain this.

  Effective organizational design

Identfy GE's organizational design in terms of the specific (a) structure, (b) strategic control systems, and (c) organizational culture. Cite specific information in the case that supports your identification of (a), (b), and (c) above.

  Derive a formula to determine the increase in the annual

scenario subsidiary x sells 10000 units to subsidiary y annually. the marginal income tax rate for subsidiary x is 30

  What is the standard deviation of the expected return

What's the standard deviation of the expected return? Show your calculations.

  Calculate eureka cost of equity using dividend growth model

a. Calculate Eureka's cost of equity using dividend growth model b. Calculate Eureka's cost of equity using the capital asset pricing model

  Contrast sources and uses of cash referencing using at

contrast sources and uses of cash referencing using at least two examples of assets and liabilities four total. provide

  Which of the following is true

Also, the new project's sales would be counter-cyclical in the sense that they would be high when the overall economy is down and low when the overall economy is strong. On the basis of this information, which of the following is true?

  What is the value of sample correlation coefficient

Do you believe the estimated regression equation would provide a good prediction of the number of shares of option grants outstanding? Use r2 to support your answer.

  Invest annually to accumulate

How much do you need to invest annually to accumulate $10,000 in 5 years? (**Please note the wording... you are going to invest a certain amount

  Why are the two costs of equity so different

A stock's last dividend was $0.80 and dividends grow at 5%; the stock's price is $61. In addition, the stock's beta is 1.50, the risk free rate is 5.5%, and the return on the market is 12%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd