Forecast the firm additional funds needed

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ABC is planning its operations and needs you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 30%, which the firm's investment bankers have recommended. Based on the AFN equation, how much would the AFN be the coming year if Harvest Home increased the payout from 10% to the new, higher level? All dollars are in millions. Last year's sales $350.0 Last year's accounts payable $80.0 Sales growth rate 30% Last year's notes payable $15.0 Last year's total assets $650.0 Last year's accruals $30.0 Last year's profit margin 20.0% Initial payout ratio 10.0%.

Reference no: EM131556056

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