Question: You have been asked to forecast the additional funds needed (AFN) for KWC, which is planning its operation for the coming year. The firm is
You have been asked to forecast the additional funds needed (AFN) for KWC, which is planning its operation for the coming year. The firm is operating at full capacity but anticipate sales will increase by as much as 52% next year. Data for use in the forecast are shown below. Assume that all ratios remain the same in the coming year. $300,000 Last year's sales = So $50,000 Last year's accounts payable 52% Sales growth rate = 8 $15,000 Last year's notes payable Last year's accruals $20,000 Last year's total assets = Ao $500,000 10.0% Last year's profit margin - PM 20.0% Last year's payout ratio How much fund must be externally raised by KWC to achieve their ambitious sales growth? (10 points)
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