ri's dive shop had the following 2019 results: • • Sales - $7,200 Costs - $6,100 Assets - $18,000 Debt-$8,000 Equity - $10,000 orecasted sales for 2020 are $8,500. There are no taxes. Assets and costs are proportional sales. Debt and Equity are not. The retention rate is 100%. What is the AFN (additional unds needed) in 2020 to support forecasted sales of $8,500? (Hint: Construct the 2020 alance sheet and find the AFN required to make the balance sheet balance. Also, assume pontaneous liabilities are unchanged from 2019 to 2020.)
ri's dive shop had the following 2019 results: • • Sales - $7,200 Costs - $6,100 Assets - $18,000 Debt-$8,000 Equity - $10,000 orecasted sales for 2020 are $8,500. There are no taxes. Assets and costs are proportional sales. Debt and Equity are not. The retention rate is 100%. What is the AFN (additional unds needed) in 2020 to support forecasted sales of $8,500? (Hint: Construct the 2020 alance sheet and find the AFN required to make the balance sheet balance. Also, assume pontaneous liabilities are unchanged from 2019 to 2020.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Hi please calculate additional funds needed
Transcribed Image Text:Piri's dive shop had the following 2019 results:
• Sales = $7,200
• Costs = $6,100
Assets $18,000
•
• Debt = $8,000
Equity = $10,000
Forecasted sales for 2020 are $8,500. There are no taxes. Assets and costs are proportional
to sales. Debt and Equity are not. The retention rate is 100%. What is the AFN (additional
funds needed) in 2020 to support forecasted sales of $8,500? (Hint: Construct the 2020
balance sheet and find the AFN required to make the balance sheet balance. Also, assume
spontaneous liabilities are unchanged from 2019 to 2020.)
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