Question: Please help! I can't figure out what I'm doing wrong. For my AFN equation I had 500,000 - 225,000 - 308,750 = -33,750 AFN equation

Please help! I can't figure out what I'm doing wrong. For my AFN equation I had 500,000 - 225,000 - 308,750 = -33,750

Please help! I can't figure out what I'm doing wrong. For my

AFN equation Broussard Skateboard's sales are expected to increase by 25% from $7.6 million in 2018 to $9.50 million in 2019. Its assets totaled $2 million at the end of 2018. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, 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 5%, and the forecasted payout ratio is 65%. 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. $ -33,750

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!