Question

In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the...

In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?

Last year's sales = S0 $200,000 Last year's accounts payable $50,000
Sales growth rate = g 40% Last year's notes payable $15,000
Last year's total assets = A0* $100,000 Last year's accruals $20,000
Last year's profit margin = PM 20.0% Target payout ratio 25.0%

Select the correct answer.

a. - $29,940
b. - $30,000
c. - $30,030
d. - $30,060
e. - $30,090
0 0
Add a comment Improve this question Transcribed image text
Answer #1

The formula for additional funds needed (AFN) is presented as follows: AFN = (Required increase in assets) - (Spontaneous inc

Add a comment
Know the answer?
Add Answer to:
In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the...

    In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales = S0 $200,000 Last year's accounts payable $50,000 Sales growth rate = g 40% Last year's notes payable $15,000 Last year's total assets =...

  • 1. In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast...

    1. In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales = S0 $200,000 Last year's accounts payable $50,000 Sales growth rate = g 40% Last year's notes payable $15,000 Last year's total assets...

  • In your internship with LLT Inc. you have been asked to forecast the firm's additional funds...

    In your internship with LLT Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? (5 points) Last year's sales = S0 $200,000 Sales growth rate = g 40% Last year's total assets = A0* $135,000 Last year's profit margin = PM 20.0% Last year's...

  • NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.)   Daniel Sawyer, the CEO of the Sawyer...

    NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.)   Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last year's accounts...

  • You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington...

    You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 85%, which the firm's investment bankers have recommended. Based on the AFN equation,...

  • You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington...

    You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 30%, which the firm's investment bankers have recommended. Based on the AFN equation,...

  • You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington...

    You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 85%, which the firm's investment bankers have recommended. Based on the AFN equation,...

  • ChangWu Inc. is planning its operations for next year, and the CEO wants you to forecast...

    ChangWu Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN) using data shown below. What is the additional funds needed (AFN) for the coming year? Last yr's sales = S0 $200,000 Last yr's accounts payable $50,000 Sales growth rate = g 40% Last yr's notes payable $15,000 Last yr's total assets = A*0 $162,500 Last year's accruals $20,000 Last yr's profit margin = M 20.0% Target payout ratio...

  • 16. Chua Chang & Wu Inc. is planning its operations for next year, and the CEO...

    16. Chua Chang & Wu Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? $200,000 Last year's sales = So Sales growth rate =g Last year's total assets = Ao* Last year's profit margin =PM 40% $127,500 20.0% Last year's accounts $50,000 payable Last year's notes...

  • Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next...

    Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last year's accounts payable $40 Sales growth rate = g 30% Last...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT