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XYZ's balance sheet and income statement are given beldw* Balance Sheet: 100 Cash A/R Accounts payable Notes payable Long-term debt (108) Cormon equity 20

 

XYZ's balance sheet and income statement are given beldw* Balance Sheet: 100 Cash A/R Accounts payable Notes payable Long-term debt (108) Cormon equity 20 shares) Total liabilitles and equity 1. 000 50 150 700 Inventories Fixed assets Total assets 300 200 500 $1.000 Income Statement: Sales $1,000 855 $ 145 70 75 Cost of goods sold EBIT Interest EBT 25 Taxes (33.3338) Net income 50 XYZ is forecasting a 108 sales increase next year. of their net income out as dividend. utilized. They expect their profit margin to remain constant. They plan to pay 30 All of their assets are fully a. Using the AFN equation, what is their AFN (addition l funds needed) ? b. What if the fixed assets are only 808 utilized (i.e. we have 20% unused capacity going into next year). What is the AFN now?

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