Financial questions

Problem 12

-

1

AFN equation

Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2013 to $9.2 million

in 2014. Its assets totaled $4 million at the end of 2013. Broussard is already at full capacity, so its

assets must grow at the same rate as projected sal

es. At the end of 2013, current liabilities were $1.4

million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of

accruals. The after

-

tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 70%.

Use

the AFN equation to forecast Brous

-

sard's additional funds needed for the coming year. Round

your answer to the nearest dollar. Do not round intermediate calculations.

Problem 12

-

2

AFN equation

Broussard Skateboard's sales are expected to increase by 15%

from $8 million in 2013 to $9.2 million

in 2014. Its assets totaled $4 million at the end of 2013. Broussard is already at full capacity, so its

assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4

million

, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of

accruals. The after

-

tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 55%.

What would be the additional funds needed? Do not round intermedi

ate calculations. Round your

answer to the nearest dollar.

Problem 12

-

3

AFN Equation

Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2013 to $9.2 million

in 2014. Its assets totaled $4 million at the end of 2013. Baxter is

already at full capacity, so its

assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4

million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of

accruals. The after

-

tax

profit margin is forecasted to be 4%. Assume that the company pays no

dividends. Under these assumptions, what would be the additional funds needed for the coming year?

Do not round intermediate calculations. Round your answer to the nearest dollar.

Problem 12-1

AFN equation

Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2013 to $9.2 million

in 2014. Its assets totaled $4 million at the end of 2013. Broussard is already at full capacity, so its

assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4

million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of

accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 70%.

Use the AFN equation to forecast Brous-sard's additional funds needed for the coming year. Round

your answer to the nearest dollar. Do not round intermediate calculations.

Problem 12-2

AFN equation

Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2013 to $9.2 million

in 2014. Its assets totaled $4 million at the end of 2013. Broussard is already at full capacity, so its

assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4

million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of

accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 55%.

What would be the additional funds needed? Do not round intermediate calculations. Round your

answer to the nearest dollar.

Problem 12-3

AFN Equation

Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2013 to $9.2 million

in 2014. Its assets totaled $4 million at the end of 2013. Baxter is already at full capacity, so its

assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4

million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of

accruals. The after-tax profit margin is forecasted to be 4%. Assume that the company pays no

dividends. Under these assumptions, what would be the additional funds needed for the coming year?

Do not round intermediate calculations. Round your answer to the nearest dollar.