Question: Can you help me use the AFN equation to forecast the additional funds needed for the coming year? Sales expected to increase by 15% from
Can you help me use the AFN equation to forecast the additional funds needed for the coming year?
- Sales expected to increase by 15% from $8.6 million in 2016 to $9.89 million in 2017.
- assets totaled $5 million at the end of 2016.
- they are already at full capacity, so its assets must grow at the same rate as projected sales.
- at the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals.
- the after tax profit margin is forecasted to be 5%,
- the forecasted payout ratio is 55%.
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