Determine what is the afn for the coming year

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Question 1: Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.

Last year's sales = S0$350

Last year's accounts payable$40

Sales growth rate = g30%

Last year's notes payable$50

Last year's total assets = A0*$630

Last year's accruals$30

Last year's profit margin = PM5%

Target payout ratio60%

Select the correct answer.

a. $156.3

b. $158.9

c. $166.7

d. $161.5

e. $164.1

Reference no: EM132503119

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