1. Assume sales are currently 100, projected sales are 110, assets that increase spontaneously with sales...
1. Assume sales are currently 100, projected sales are 110, assets that increase spontaneously with sales are 100, liabilities that increase spontaneously with sales are 50, the profit margin is 4% and the payout ratio is 25%. Using the AFN equation, what are the additional funds needed?
A. $1.2
B. $1.7
C. $0.7
D. $3.8
2. Assume sales are currently 200, projected sales are 250, assets that increase spontaneously with sales are 800, liabilities that increase spontaneously with sales are 600, the profit margin is 10% and the payout ratio is 20%. Using the AFN equation, what are the additional funds needed?
A. $8
B. $30
C. $29
D. $23
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