You have been asked to forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm
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Question:
You have been asked to forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at only 50% of capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Current Assets may be considered negligible.
Last year's sales = S0 | $169,000 | Last year's accounts payable | $40,000 |
Sales growth (ΔS) | $47,000 | Last year's notes payable | $10,000 |
Last year's total assets = A0* | $280,000 | Last year's accruals | $10,000 |
Last year's profit margin = PM | 0.02 | Target payout ratio | 0.4 |
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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