Calculation of additional fund requirement using afn

Assignment Help Financial Accounting

Reference no: EM13356307

Calculation of additional fund requirement using AFN equation.

Carter Corporation's sales are expected to increase from $5 million in 2005 to $6 million in 2006, or by 20%. Its assets totaled $3 million at the end of 2005. Carter is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2005, current liabilities are $1 million, consisting of $250, 000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. The after-tax profit margin is forecasted to be 5%, and the forecasted retention ration is 30 %. Use the AFN equation to forecast Carter's additional funds needed for the coming year.

Reference no: EM13356307

Questions Cloud

Computation of machine hours for product mixabc company : computation of machine hours for product mix.abc company produces product x product y and product z. all three products

Decision based on sell or process further of a : decision based on sell or process further of a product.missou mining company mines an iron ore called alpha. during the

Decision based on make or buy of the productthe minnetonka : decision based on make or buy of the product.the minnetonka corporation which produces and sells to wholesalers a

Calculation of net incomeat the end of last year roberts : calculation of net income.at the end of last year roberts inc. reported the following income statement in millions of

Calculation of additional fund requirement using afn : calculation of additional fund requirement using afn equation.carter corporations sales are expected to increase from 5

Calculation of no of days in conversion cycleprimrose corp : calculation of no. of days in conversion cycle.primrose corp has 15 million of sales 2 million of inventories 3

Calculation of direct material price variancea dress : calculation of direct material price variance.a dress company has the following standards to make one dressnbspstandard

Calculation of requirement of cash to be maintainedthe : calculation of requirement of cash to be maintained.the wallace company must maintain a minimum cash balance of 30000.

Q1 calculation of budgeted cash collectionsthe patuxent : q1. calculation of budgeted cash collections.the patuxent rail companys sales for the next three months are as

User Account

All Pages