Question: You have been asked to forecast the additional funds needed (AFN) for next year for Hurley, Hoblit, & Davis (HHD), which is planning its operation

You have been asked to forecast the additional funds needed (AFN) for next year for Hurley, Hoblit, & Davis (HHD), which is planning its operation for the coming year. The firm is operating at full capacity. The payout ratio for HHD is 10%. Based on this information, calculate the additional funds needed for the coming year given the following information:

Last year's sales = $350 Million Sales growth rate = 25% Last year's total assets = $550 Million Last year's profit margin = 15% Last year's accounts payable = $50 Million Last year's notes payable = $15 Million Last year's accruals = $20 Million Payout ratio = 15%

A. $28.72 Million

B. $124.54 Million

C. $64.22 Million

D. $92.58

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