nternship 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* $152,500 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0%

I attached the image of the question.

The pictures is the formula and example. Compute the additional funds needed. JHOPE "I am your hope" Company has 10% net profit margin on sales in previous years and expects to maintain the same next year. The Business is expected to increase its sales level from P1,000,000 to P1 255 000. The percentages of current sales and current liabilities that have direct relationship with sales are 60% and 35%, respectively. Out of the total earnings at are expected to be realized next year, 25% will be retumed to the shareholders in the form of dividends. Compute the following: 5. Projected increase in current assets 6. Spontaneous increase in current liabilities 7. Increase in retained earings 8. Additional fund needed.

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* $125,000 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0%   Select the correct answer.   a. - $20,040     b. - $19,960     c. - $20,060     d. - $20,020     e. - $20,000

Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $50,000 2 35,000 3 30,000 4 20,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment. a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 20%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. c. If the opportunity cost of capital is 10%, what is the project's NPV? d. What is the project IRR?

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* $135,000 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0%   Select the correct answer.   a. - $15,940     b. - $16,000     c. - $16,060     d. - $16,030     e. - $16,090

A firm is considering a new inventory system that will cost $120,000.  The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4.  The firm’s required rate of return is 9%.  What is the payback period of this project?     1.95 years     2.46 years     2.99 years     3.10 years Based on the information from Question 47.  What is the net present value (NPV) of the project?     $28,830.29     $30,929.26     $36,931.43     $39,905.28 Based on the information from Question 47, what is the internal rate of return (IRR) of this project?     14.03%     17.56%     19.26%     21.78% Based on the information from Question 47, what is the profitability index (PI) of this project?     0.87     1.11     1.31     1.83.

Finance