2: Assignment - Corporate Valuation and Financial Planning Assets Current Assets: Cash and equivalents Accounts receivable Inventories $150,000 400,000 350,000 $900,000 Total Current Assets Net Fixed Assets: Net plant and equipment(cost minus depreciation) $2,100,000 Total Assets $3,000,000 A Liabilities Current Liabilities: Accounts payable Accrued liabilities Notes payable Total Current Liabilities Long-Term Bonds Total Debt Common Equity Common stock Retained earnings Total Common Equity Total Liabilities and Equity $250,000 150,000 100,000 $500,000 1,000,000 $1,500,000 800,000 700,000 $1,500,000 $3,000,000 In addition, Bohemian Manufacturing Company is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Bohemian Manufacturing Company is expected to generate to retained earnings. According to the AFN equation and projections for Bohemian Manufacturing Company, the firm's AFN is from operations that will be added Grade It Now Save & Continue The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Bohemian Manufacturing Company generated $350,000 net income on sales of $14,500,000. The firm expects sales to increase by 18% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. cardoquation to determine the increase in