1. Assume sales are currently 100, projected sales are 110, assets that increase spontaneously with sales are 100, liabilities that increase spontaneously with sales are 50, the profit margin is 4% and the payout ratio is 25%. Using the AFN equation, what are the additional funds needed?

A. $1.2

B. $1.7

C. $0.7

D. $3.8

Answer rating: 100% (QA)

Answer I... View the full answer