Question: Using the facts noted below determine whether AFN is positive or negative and by how much? Note that the company also has commitments from investors

Using the facts noted below determine whether AFN is positive or negative and by how much? Note that the company also has commitments from investors to raise $40 million of new common shares. FACTS in millions old sales $ 200.00 new sales $ 240.00 so change in sales $ 40.00 20.00% old Total Assets $ 500.00 new Total Assets $ 600.00 so change in assets $ 100.00 20.00% pre-tax income $ 75.00 Net Income $ 56.25 75.00% tax rate 25.00% spontaneous AP 25 spontaneous Accruals 25 50 Profit Margin 28.125% Number shares outs. 4,000,000 div per share $ 10.00 total div $ 40,000,000.00 total div paid $ 40,000,000.00 guaranteed common equity issue $ 40,000,000.00

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