Question: please help me understand how to work the following question: Problem 12-01 AFN equation Broussard Skateboard's sales are expected to increase by 20% from $8.2
please help me understand how to work the following question:

Problem 12-01 AFN equation Broussard Skateboard's sales are expected to increase by 20% from $8.2 million in 2016 to $9.84 million in 201?. Its assets totaled $4 million at the end of 2016. Broussard is already at Full capacity. so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million. consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of aocmals. The after-tax prot margin is forecasted to be 3%, and the forecaster! payout ratio is 60%. Use the AFN equation to forecast Brougiard's additional funds needed for the coming year. Round your answer to die nearest dollar. Do not round intermediate calculations. $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
