Assets must grow at the same rate as projected sales

Assignment Help Financial Management

Reference no: EM13895433

Broussard Skateboard's sales are expected to increase by 25% from $7.6 million in 2015 to $9.50 million in 2016. Its assets totaled $4 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2015, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.

Reference no: EM13895433

Questions Cloud

Property ownership could he sell without consent of co-owner : Are all of the items listed below reasons why having a will is important? Which items will go through probate? Which property ownership could he sell without the consent of a co-owner?

About the perpetuity values : Bob's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $700 per year forever. If the required return on this investment is 12 percent, how much will you pay for the policy?

Types of employer plans : Which of the following types of employer plans are exempt from most or all ERISA provisions?

Regarding tax implications of cash balance plans : All of the following are true regarding tax implications of cash balance plans, except

Assets must grow at the same rate as projected sales : Broussard Skateboard's sales are expected to increase by 25% from $7.6 million in 2015 to $9.50 million in 2016. Its assets totaled $4 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

Coupons payable semiannually is redeemable at maturity : A 9% bond with a 1,000 par values and coupons payable semiannually is redeemable at maturity for 1,100. At a purchase price P, the bond yields a nominal interest rate at 8%, compounded semiannually, and a present value of the redemption amount is 190..

Do you agree or disagree with the president statement : Do you agree or disagree with the President's statement? As a Human Resource Manager of a company who is considering outsourcing, how would you help keeps the job within your current organization

Develop the load profile for the computer assembly process : Calculate the processing load and develop the load profile for the computer assembly process. As the planner, what concerns do you have (if any)? What changes might you consider?

Develop the load profile for the stereo speaker subassembly : Calculate the processing load and available capacity, and develop the load profile for the stereo speaker subassembly. Two employees work the assembly process for 40 hours each.

User Account

All Pages