Afn equation carlsbad corporation sales

Assignment Help Financial Management
Reference no: EM131460334

AFN equation Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $2 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 45%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.

Reference no: EM131460334

Questions Cloud

What does asset liablity management role for banks : What does asset liablity management role for banks? and for pension funds?
What is your best estimate of the company cost of equity : If the stock sells for $38 per share, what is your best estimate of the company’s cost of equity?
Two different salary arrangements-what is pv for both option : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements.
Calculate the base-case cash flow and NPV : We are evaluating a project that costs $1,374,000, has a six-year life, and has no salvage value. Calculate the base-case cash flow and NPV.
Afn equation carlsbad corporation sales : AFN equation Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017,
What is the new divisor for price-weighted index : what is the new divisor for the price-weighted index?
Example of what type of ownership estate : Example of what type of ownership estate
Which scenario has the lower effective borrowing cost : which scenario has the lower effective borrowing cost?
The interest rate on the loan with the compensating balance : How low would the interest rate on the loan with the compensating balance have to be for you to choose it?

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the trade in value of your existing car

Access car price quotations online. Determine the trade-in value of your existing car. How does the value differ from the price you paid for it?

  Calculate the appropriate transfer price per pound

Sugarland, Inc., has a division in Indonesia that makes dyestuff in a variety of colors used to dye denim for jeans, and another division in the United States that manufactures denim clothing. The Dyestuff Division incurs manufacturing costs of $2.68..

  What is present value of these payments if the discount rate

Sherwin Williams will receive $19,500 a year for the next 25 years as a result of a picture he has painted. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What is the p..

  Perpetual preferred stock outstanding

Fee Founders has perpetual preferred stock outstanding that sells for $40.00 a share and pays a dividend of $5.00 at the end of each year. What is the required rate of return?

  The bonds make annual payments and have par value

The Timberlake-Jackson Wardrobe Co. has 10.9 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,117.33, what is the YTM?

  Calculate the tax cost of partnership earnings this year

Kari is a partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is $20,000 and she received a cash distribution of $30,000. Kari's tax basis in her partnership interest at the beginning of the year was $50,000. Her mar..

  Find the holding period return

The prices for the white swan corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for March.

  What was the price-cash flow ratio

Weston Corporation had earnings per share of $1.66, depreciation expense of $655,000, and 250,000 shares outstanding. What was the operating cash flow per share? If the share price was $61, what was the price-cash flow ratio?

  Explore the video tab by using the key term

Go to www.cnbc.com and explore the video tab by using the key terms reporting and estimate. As you learned in this unit, there are various sources of information. Watch at least two videos you find, list the videos you viewed and provide a summary of..

  The value of your portfolio at the end of the year

Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. Over the next year Ball has a return of 12.5%, Lowes has..

  Statements is true of loan amortization

Which of the following statements is true of loan amortization? What is the appropriate interest rate to use when making interest rate comparisons if there is more than one compounding period per year?

  What real amount must you deposit each year to achieve goal

You want to have $2 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 3.8 percent. What real amount must you deposit each year to achieve your goal?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd