Assume (1) that SEC was operating at full capacity in 2004 with respect to all assets, (2)

Question:

Assume (1) that SEC was operating at full capacity in 2004 with respect to all assets, (2) that all assets must grow proportionally with sales (3) that accounts payable and accruals will also grow in proportion to sales, and (4) that the 2004 profit margin and dividend payout will be maintained. Under these conditions, what will the company’s financial requirements be for the coming year? Use the AFN equation to answer this question.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...