What is the firms afn for the next year

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Problem

A firm's sales are forecasted to increase by 30% next year. Use the latest year's balance sheet below ($ million). Cash $200 Account payable $60 Accounts receivable $300 Notes payable $40 Inventories $300 Accruals $50 Fixed assets $500 Bonds (long-term debt) $300 Common stock $500 Retained earnings $350 Total assets $1,300 Total liabilities & equity $1,300 The latest year's sales were $800 million. The firm's fixed assets were used to 80% of capacity during the latest year. All current assets and current liabilities except for notes payable increase at the same rate as sales. Any additional financing will be borrowed as notes payable. Fixed assets should be forecasted with excess capacity. The firm didn't issue any additional bonds or stocks. Get the instant assignment help. The firm's after-tax profit margin is forecasted to be 12% and its payout ratio to be 40%. What is the firm's AFN for the next year?

Reference no: EM133910338

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