Sales are expected to increase

Assignment Help Financial Management

Reference no: EM13940116

Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2013 to $9.66 million in 2014. Its assets totaled $3 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2013, 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 5%, and the forecasted payout ratio is 60%. 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: EM13940116

Questions Cloud

Considered when reporting loss contingencies : Once the audit evidence is gathered and the testing is complete, how do you know there are no other items outstanding? To ensure the audit is complete, it is important to examine loss contingencies. What are some sources he can use to identify if los..

Picture a professional business work environment : Picture a professional business work environment from a few decades ago and compare it to one today. In thinking about all aspects of this work environment, identify what has changed. In your posting, discuss the changes you have identified as well a..

Estimate the sales price of product : You are evaluating a product for your company. You estimate the sales price of product to be $190 per unit and sales volume to be 10,900 units in year 1; 25,900 units in year 2; and 5,900 units in year 3. The project has a 3 year life. The tax rate i..

Domestic firms have internationalized : Historically, domestic firms have internationalized their operations to seize opportunities or deal with threats, or both. Post what you think are the operational opportunities and threats in going global.

Sales are expected to increase : Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2013 to $9.66 million in 2014. Its assets totaled $3 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

Which of the modifying factors of toxic effects : Which of the modifying factors of toxic effects (Chapter 5) do you think would be most important in this situation?

Determine the total charge under each plan for case : A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.44 a minute for daytime calls and $.19 a minute for evening calls. Det..

Made significant direct foreign investments : In recent years German automobile manufacturers have made significant direct foreign investments in the U. S. Their main motive in doing so is attributable to

Common stock-preferred stock and market : You are given the following information for Lightning Power Co. Assume the company’s tax rate is 38 percent. Common stock: 370,000 shares outstanding, selling for $55 per share; the beta is 1.11. Preferred stock: 15,000 shares of 5 percent preferred ..

User Account

All Pages