Discuss forecast carlsbad additional funds

Assignment Help Finance Basics
Reference no: EM131954882

Question: Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $5 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 30%. Use the AFN equation to forecast Carlsbad's additional funds needed 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: EM131954882

Questions Cloud

Examine a well known stereotype about a group you belong to : Examine a well known stereotype about a group you belonged to, such as your religion, ethnic group, profession, home town, sex, age, hair color, and so on.
What are some risks and liabilities : What are some risks and liabilities that could be associated with the agency contract between PI and Teri Lang
Growth rate could be supported with no outside financing : What is the sustainable growth rate for the company? What growth rate could be supported with no outside financing at all?
What should be the correct payment to the ATO have been : In your opinion, after investigating this BAS as a sample document as part of your audit, what should be the correct payment to the ATO have been
Discuss forecast carlsbad additional funds : Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $5 million.
Describe whether unions are gaining in membership : Describe whether unions are gaining or declining in membership. Has it changed over the recent past and if so, what has fueled the change.
What are the net interest rates of carter : Carter Enterprises can issue floating-rate debt at LIBOR + 2 percent or fixed-rate debt at 10.10 percent. Brence Manufacturing can issue floating-rate debt.
At what constant rate is the stock expected to grow : Carnes Cosmetics Co.'s stock price is $38.37, and it recently paid a $2.25 dividend. This dividend is expected to grow by 21% for the next 3 years.
What is the maximum dollar purchase you can make : If the initial margin requirement is 55 percent, what is the maximum dollar purchase you can make? with explain please.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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