AFN equation Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2019...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6649521e2b2e9_1816649521d72cf8.jpg)
Transcribed Image Text:
AFN equation Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2019 to $10.32 million in 2020. Its assets totaled $2 million at the end 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, 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 3%, and t forecasted payout ratio is 45%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. $ AFN equation Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2019 to $10.32 million in 2020. Its assets totaled $2 million at the end 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, 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 3%, and t forecasted payout ratio is 45%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. $
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Data for Video Phones, Inc., are provided in P114A. Required: Prepare the statement of cash flows for Video Phones, Inc., using the direct method. Disclose any noncash transactions in an accompanying...
-
Develop a procedure similar to that of Section 13.2 to calculate a complex, binary, batch-distillation operation using the equipment arrangement of figure.
-
Accounting records for Richs Shopping Bags yield the following data for the year ended July 31, 2011: Requirements 1. Journalize the inventory transactions for the company using the data given. 2....
-
What are the dynamics of the board-management relationship?
-
Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash flow cycle. Christies 2008 sales (all on credit) were $150,000; and...
-
Wildhorse Co . began operations on January 1 , 2 0 2 3 . Financial statements for 2 0 2 3 and 2 0 2 4 contained the following errors: In addition, on December 3 1 , 2 0 2 4 , fully depreciated...
-
Uncle Sam has been selling pies on the sidewalk of Main Street for quite a number of years. He is a crowd favorite because of the excellent flavor, consistent quality and variety. Every day Uncle Sam...
-
Briefly explain the nature of each of the following methods for eliciting PINs from customers: a. Mail solicitation b. Telephone solicitation c. PIN entry via a secure terminal d. PIN entry at the...
-
What is a digital signature? Why are digital signatures needed in data communication systems? How are digital signatures used to send signed, secret messages?
-
Explain why authentication should be a two-way process: the access control mechanism authenticating itself and users authenticating themselves.
-
What is the primary role of quality assurance management as it operates within the information systems function?
-
What is the difference between a discretionary access control policy and a mandatory access control policy? In commercial information systems environments, which type of access control policy is most...
-
1. Compare the treatment group to the pool of potential comparison group observations using t-tests (PROC TTEST) and chi-square tests (PROC FREQ). Examine the results and summarize how the...
-
(a) Explain why the concentration of dissolved oxygen in freshwater is an important indicator of the quality of the water. (b) How is the solubility of oxygen in water affected by increasing...
-
One of your clients. Sanna Ltd, has prepared a draft set of financial statements and submitted them to you for your advice: (2) Development costs have arisen as a result of developing a product for a...
-
The stated objective of FRS 3 is to 'require reporting entities failing within its scope to highlight a range of important components of financial performance to aid users in understanding the...
-
Brachol plc is preparing its accounts for the year ended 30 November 1992. The following information is available from the previous year's balance sheet: At 30 November 1991 there were credit...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App