Question: Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firms profit margin

Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firms profit margin remains constant and the company is at full capacity. Sales this year is P6,000,000 Percentage increase projected for next year sales = 20% Net income this year amounts to P600,000 Retention ratio = 50% Accounts payable = P1,100,000 Notes payable = P180,000 Accrued expenses = P500,000 Projected excess funds available next year is determined to be P200,000

Questions:

1. Determine the spontaneous liabilities increase.

2. How much is the increase in Retained Earnings?

3. How much is the total assets?

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