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.)

Zeebadee Inc. wants to forecast free cash flow to equity (FCFE) using the percent-of- sales method. Prior year sales were $10,000. What is FCFE in Year 5 based on the information presented below? Sales growth Profit margin Net FCInv (% of Sales) WCInv (% of Sales) DR $2,335.93 $1,687.06 $1,008.00 $1,557.29 Year 1 Year 4 Year 2 Year 3 14.00% 12.00% 10.00% 10.00% 9.00% 10.00% 12.00% 12.00% 8.00% 8.00% 8.00% 6.00% 3.00% 3.00% 2.00% 3.00% 40.00% 40.00% 40.00% 40.00% Year 5 5.00% 12.00% 3.00% 1.00% 40.00% 4

Bottling's December 31st balance sheet is given below:      Cash                      10       Accounts payable          $ 15Accounts receivable    25       Notes payable                   20      Inventory               40       Accrued wages and taxes 15      Net fixed assets    75       Long-term debt                   30                                               Common equity                  70                                                     Total liabilities       Total assets       $150          and equity                  $150 Sales during the past year were $100, and they are expected to rise by 50 percent to $150 during next year.  Also, during last year fixed assets were being utilized to only 85 percent of capacity (excess capacity).  Assume that profit margin will remain constant at 5 percent and that the company will continue to pay out 60 percent of its earnings as dividends. To the nearest whole dollar, what amount of nonspontaneous, additional funds will be…

Tomey Supply Company’s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 27 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 39 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey. Tomey Supply Company Income Statement and Balance Sheet.                     Income Statement   Balance Sheet               Revenues $1,768,121   Assets             Costs 1,116,487   Current Assets $280,754           EBT 651,634   Net Fixed Assets 713,655           Taxes (35%) 228,072   Total assets $994,409           Net Income $423,562                       Liabilities and Equity:                   Current Liabilities $167,326                 Long-term…

Mars Corporation is interested in estimating the expected rate of sales growth sustainability and additional financing needed to support improvements fast sales next year. Last year, revenue was $5.5 million; net profit is $500,000; investment in assets is $2,500,000; payables and accruals are $1,000,000; and shareholder equity at the end of the year is $1,500,000 (that is, the equity at the beginning of the year of $1,000,000 plus retained earnings of $500,000). The business does not pay dividends and does not expect to pay dividends in the future. a.Compute forecasted sales and changes in sales first. What is your estimate of the funds additions needed next year to support the upgrade sales by 20 percent? Also include the interpretation of the results of the calculations

Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at only 50% of capacity and using the data in the table below,  forecast Orwell's AFN for the coming year? Current Assets may be considered negligible.  Last year's sales = S0 $164,000 Last year's accounts payable $40,000 Sales growth (ΔS) $46,000 Last year's notes payable $10,000 Last year's total assets = A0* $268,000 Last year's accruals $10,000 Last year's profit margin = PM 0.00 Target payout ratio 0.1

Derry Corporation is expected to have an EBIT of $21 million next year. Increases in depreciation, the increase in net working capital, and capital spending are expected to be $165,000, $80,000, and $120,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $10.4 million in debt and 750,000 shares outstanding. You believe that in Year 5 sales will be $23.7 million and the appropriate price-sales ratio is 2.9. The company's WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price

Tomey Supply Company’s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 11 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 35 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey.  Tomey Supply Company Income Statement and Balance Sheet Income Statement   Balance Sheet Revenues $1,768,121   Assets   Costs 1,116,487   Current Assets $280,754 EBT 651,634   Net Fixed Assets 713,655 Taxes (35%) 228,072   Total assets $994,409 Net Income $423,562             Liabilities and Equity:         Current Liabilities $167,326       Long-term debt 319,456       Common Stock 200,000       Retained Earnings 307,627       Total liabilities…

Esther’s Egg Farm is constructing its pro forma financial statements for this year. At year end, assets were $400,000 and accounts payable (the only current liabilities account) were $125,000. Last year’s sales were $500,000. Esther’s expects to grow by 15 percent this year. Assets and accounts payable are expected to grow proportionally to sales. Common stock currently equals $140,000, and retained earnings are $98,000. Esther’s plans to sell $15,000 of new common stock this year. The firm’s profit margin on sales is 6 percent, and 40 percent of earnings will be paid out as dividends. How much new long-term debt financing will Esther’s need this year to finance its expected growth? Esther’s is currently operating at full capacity.