Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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1. Projected increase in current assets
2. Spontaneous increase in current liabilities
3. Increase in retained earnings
4. Additional fund needed
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
40%
$127,500
20.0%
Last year's sales = So
Sales growth rate=g
Last year's total assets = Ao
Last year's profit margin = PM
-$11,000
O O O O O
a.
b.-$25,571
c.-$7,000
d.-$25,000
e. -$19,000
Last year's accounts payable
Last year's notes payable
Last year's accruals
Target payout ratio
$50,000
$15,000
$20,000
25.0%
General Accounting
Chapter 3 Solutions
Corporate Finance
Ch. 3 - Financial Ratio Analysis A financial ratio by...Ch. 3 - Industry-Specific Ratios So-called same-store...Ch. 3 - Sales Forecast Why do you think most long-term...Ch. 3 - Sustainable Growth In the chapter, we used...Ch. 3 - EFN and Growth Rate Broslofski Co. maintains a...Ch. 3 - Common-Size Financials One tool of financial...Ch. 3 - Asset Utilization and EFN One of the implicit...Ch. 3 - Comparing ROE and ROA Both ROA and ROE measure...Ch. 3 - Ratio Analysis Consider the ratio EBITD/Assets....Ch. 3 - Return on Investment A ratio that is becoming more...
Ch. 3 - Use the following information to answer the next...Ch. 3 - Prob. 12CQCh. 3 - Use the following information to answer the next...Ch. 3 - Use the following information to answer the next...Ch. 3 - Use the following information to answer the next...Ch. 3 - DuPont Identity If Muenster, Inc., has an equity...Ch. 3 - Equity Multiplier and Return on Equity Synovec...Ch. 3 - Prob. 3QAPCh. 3 - EFN The most recent financial statements for...Ch. 3 - Prob. 5QAPCh. 3 - Sustainable Growth If the Moran Corp. has an ROE...Ch. 3 - Prob. 7QAPCh. 3 - Prob. 8QAPCh. 3 - Prob. 9QAPCh. 3 - Prob. 10QAPCh. 3 - Prob. 11QAPCh. 3 - Prob. 12QAPCh. 3 - External Funds Needed The Optical Scam Company has...Ch. 3 - Days' Sales in Receivables A company has net...Ch. 3 - Prob. 15QAPCh. 3 - Prob. 16QAPCh. 3 - Prob. 17QAPCh. 3 - Prob. 19QAPCh. 3 - Prob. 20QAPCh. 3 - Calculating EFN The most recent financial...Ch. 3 - Prob. 22QAPCh. 3 - Prob. 23QAPCh. 3 - Prob. 26QAPCh. 3 - Prob. 27QAPCh. 3 - Prob. 28QAPCh. 3 - Prob. 29QAPCh. 3 - Prob. 30QAPCh. 3 - Calculate all of the ratios listed in the industry...Ch. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MC
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- ff1arrow_forwardForecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at full capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Last year's sales = S0 $365,000 Last year's accounts payable $40,000 Sales growth (ΔS) $31,000 Last year's notes payable $10,000 Last year's total assets = A0* $203,000 Last year's accruals $10,000 Last year's profit margin = PM 0.75 Target payout ratio 0.6arrow_forwardAnswer the first question. The second picture is the formulaarrow_forward
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