Company is planning its operations for next year, and as its CFO, you will need to forecast the company’s additional funds needed (AFN) based on the following data. Dollars are in millions. Last year’s sales = $364 Last year’s accounts payable = $58 Sales growth rate = 30% Last year’s notes payable = $50 Last year’s total assets = $548 Last year’s accruals = $30 Last year’s profit margin = 5.32% Target payout ratio = 60% Your company is operating at full capacity. Based on the AFN formula and the Percentage of Sales method, what is the AFN for the coming year? Round your answer to two decimal places of dollar, but ignore dollar and millions, e.g., xxx.xx. (Hint: Use the AFN General Formula in Financial Forecasting.)
Company is planning its operations for next year, and as its CFO, you will need to forecast the company’s additional funds needed (AFN) based on the following data. Dollars are in millions.
Last year’s sales = $364 Last year’s accounts payable = $58
Sales growth rate = 30% Last year’s notes payable = $50
Last year’s total assets = $548 Last year’s accruals = $30
Last year’s profit margin = 5.32% Target payout ratio = 60%
Your company is operating at full capacity. Based on the AFN formula and the Percentage of Sales method, what is the AFN for the coming year? Round your answer to two decimal places of dollar, but ignore dollar and millions, e.g., xxx.xx. (Hint: Use the AFN General Formula in Financial
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