Question: answer in excel, show all equations Q1 Internal financial planners forecast Wooten Sims LLC's sales to increase by 4% next year Current sales are $562
answer in excel, show all equations
| Q1 | Internal financial planners forecast Wooten Sims LLC's sales to increase by 4% next year | ||||||
| Current sales are $562 million | |||||||
| Total operating assets in the current period are 1,200 million ($1.2 billion) | |||||||
| In the current period, short term debt is $75 million, accounts payable is $80 million, and accruals are $100 million | |||||||
| The firm's profit margin is 15% and expected to remain stable | |||||||
| The firm pays out 60% of its earnings each period as dividends | |||||||
| Q1a | Under the current forecast, what is the dollar amount of Additional Funds Needed? | ||||||
| Q1b | How much external capital would the firm have to raise to make the plan work? | ||||||
| Q1c | Does the forecast seem reasonable based on the AFN value and what you know about the size of the firm? | ||||||
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