CD Projekt Red sales are expected to increase in 2021 by 8% from $25 million in...

   

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CD Projekt Red sales are expected to increase in 2021 by 8% from $25 million in 2020. Its assets totaled $14 million at the end of 2018. CD Projekt Red is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2020, current liabilities were $1.9 million, consisting of $750,000 of accounts payable, $600,000 of notes payable, and $550,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 80%. Using the AFN equation, what would be CD Projekt Red 's additional funds needed for the coming year? Select one: a. $698,000 Ob. $954,000 Oc. $746,000 CD Projekt Red sales are expected to increase in 2021 by 8% from $25 million in 2020. Its assets totaled $14 million at the end of 2018. CD Projekt Red is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2020, current liabilities were $1.9 million, consisting of $750,000 of accounts payable, $600,000 of notes payable, and $550,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 80%. Using the AFN equation, what would be CD Projekt Red 's additional funds needed for the coming year? Select one: a. $698,000 Ob. $954,000 Oc. $746,000

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The detailed answer for the above question is provided below AFN Assets Spontaneous L... View the full answer