Question: this is the entire question. i do not know what else to add. thanks! 2. The Additional Funds Needed (AFN) equation Blue Ek Manufacturing has

 this is the entire question. i do not know what else
to add. thanks! 2. The Additional Funds Needed (AFN) equation Blue Ek
this is the entire question. i do not know what else to add. thanks! Manufacturing has the following end-of-year balance sheet: Blue Elk Manufacturing Balance Sheet
For the Year Ended on December 31 Assets Current Ass Cash and

2. The Additional Funds Needed (AFN) equation Blue Ek Manufacturing has the following end-of-year balance sheet: Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Current Ass Cash and equivalents 3150,000 Accounts receivable 400,000 Inventones 350,000 Total Current Assets 5900,000 Net Fixed Assets Net plant and equipment $2,100,000 (cos minus depreciation) Liabilities Current Liabilities: Accounts payable Accrued liabilities Notes payable Total Current Liabities Long Term Bonds Total Debt $250,000 150,000 100,000 $500,000 1,000,000 $1,500,000 Common Equity Common stock 300,000 Retained earnings 700,000 Total Common Equity $1,500,000 Total Usbilities and Equity $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 $300,000 net income on sales of 512,500,000 The firm expects sales to increase by 15 this coming year and also expects to maintain its long-run dividend payout ratio of 30% Suppose Blue Elk Marutacturing's assets are tully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Sive Eik Manufacturing's expected sales 5517,500 O $382.500 $450,000 5427,500 When atom grows, some labities grow spontaneously along with sales. Spontaneous abilities are source of capital that the firm wil generate Internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Blue Elk Manufacturing this year O $55,000 $57.000 569.000 $60,000 In addition, Blue Ex Manufacturing 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 tem generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firm's proht maryn and dividend payout rate are expected to remain constant Given the preceding information, Bide E Manufacturing is expected to generates carnings from operations that will be added to retained According to the AFN equation and projections for Blue Ex Macfactures, the firm's AFNSS 2. The Additional Funds Needed (AFN) equation Blue Elk Manufacturing has the following end-of-year balance sheet: $250,000 Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assis Current Liabilities: Cash and equivalents 5150,000 Accounts payable Accounts receivable 400,000 Accrued liabilities Inventories 350,000 Notes payable Total Current Assets $900,000 Total Current Liabilities Net Fixed Assets Long-Term Bonds Net plant and equipment $2,100,000 Total Debt (cost minus depreciation) Common Equity Common stock Retained earnings Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity 150,000 100,000 $500,000 1,000,000 $1,500,000 800,000 700,000 $1,500,000 $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 $300,000 net income on sales of $12,500,000. The firm expects sales to increase by 15% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue Elk Manufacturing's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Elk Manufacturing's expected sales Support Blue Ek Manufacturing's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Ek Manufacturing's expected sales 5517,500 $352,500 $450,000 $427,500 When a firm grows, some abilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate wternally, to the reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous tibinties for Blue Elk Manufacturing this year $51.000 $57,000 569.000 160,000 In addition, Blue El Manufacturing 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 Given the preceding information, Blue Elk Manufacturing is expected to generate $ from operations that will be added to retained earrings According to the AFN equation and projections for Blue Elk Manufacturing, the firm's AFN IS

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