Question: answer all please 3. The Additional Funds Needed (AFN) equation Blue Bk Manufacturing has the following end of year balance sheet: Blue Eik Manufacturing Balance


3. The Additional Funds Needed (AFN) equation Blue Bk Manufacturing has the following end of year balance sheet: Blue Eik Manufacturing Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets Current Liabilities: Cash and equivalents $150.000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment $2,100,000 Total Debt $1,500,000 (cost minus depreciation) Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity 51.500.000 Total Assets 53,000.000 Total Liabilities and Equity 53,000.000 The firm currently in the process of forecasting sales asset requirements, and required funding for the Blue Elk Manufacturing generated $500,000 net neome on sales of $12.500,000. The firm expects sales expects to maintain its long-run dividend payout ratio of 25%. Suppore Blue Ek's assers are fully used. Using the additional funds needed AFV) equation to determin necessary to support a film's expected sales projected that Blue recule When a gomezbilities grow spontaneous along thaler Spontaneous abater are internet 10 the reduce the need for externe cat Homuch of the tota ressen stetsbe a arch Net Fixed Assets: Net plant and equipment (cost minus depreciation) Long-Term Bonds Total Debt 1,000,000 $1,500,000 $2.100,000 Common Equity Common stock Retained earnings Total Common Equity Total Liabilities and Equity 800,000 700,000 $1,500,000 $3,000,000 Total Assets $3,000,000 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. Blue Elk Manufacturing generated $500.000 net income on sales of $12.500,000. The firm expects sales to increase by 1946 this coming year and also expects to maintain its long-run dividend payout ratio of 35% Suppose Blue Eksassets are fully utilized. Using the additional funds needed (AFN) equation to determine the increase in total assets that necessary to support a fim's expected sales it la projected that Blue Elk will recuire In additional asset When a firm ground some abilities grow spontaneously song srith Hae Spontaneou $456,000 te a source of capital that the firm wit generate Internally, so they reduce the need for external capital. How much of the total increas 5570.000 be supplied by spontaneous abilities for Blue this year? $513 000 568.400 5622.000 560.800 503.600 $76.000 Suppose Blue Elk's assets are fully utilized. Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm's expected sales, it is projected that Blue Elk will require in additional assets. $456,000 When a firm grows, some liabilities grow spontaneously along with sales. Spontaneou re a source of capital that the firm will generate internally, so they reduce the need for extemal capital. How much of the total increas $570,000 fill be supplied by spontaneous liabilities for Blue Ek this year? $513,000 O $68.400 5627,000 O $60,800 @ 583.600 O $76.000 In addition, Blue Elk Manufactung 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. from operations that will be added to it existing retained Given the preceding information Blue Eik expects to generate samninga. (Hint Round your answer to the nearest whole dollar) According to the AFN Gation and projections for Bulk Manufacturing the firm AFNI
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