The after-tax profit margin is forecasted

Assignment Help Financial Management

Reference no: EM13764996

Broussard Skateboard's sales are expected to increase by 25% from $8.0 million in 2013 to $10.00 million in 2014. Its assets totalled $4 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 3%, and the forecasted payout ratio is 75%. 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: EM13764996

Questions Cloud

Determine philip taxable income : Philip, 27, is a single self-employed plumbing contractor. During the year, he earns gross revenues of $49,000 and incurs $6,000 of business expenses. His itemized deductions for the year are $7,000. Determine Philip's taxable income and his total..

What are fixed costs : At an output level of 17,000 units, you have calculated that the degree of operating leverage is 2.00. The operating cash flow is $33,800 in this case. What are fixed costs? What will the operating cash flow be if output rises to 18,000 units?

What are pros and cons of each assistive technology device : What are the pros and cons of each AT device? How could each device be improved to make it appeal to a wider population?

Why each communication style is acceptable : Include a summary statement of at least 2 reasons why each communication style is either acceptable or non-acceptable for this population

The after-tax profit margin is forecasted : Broussard Skateboard's sales are expected to increase by 25% from $8.0 million in 2013 to $10.00 million in 2014. Its assets totalled $4 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as pr..

Measure the cost of the common stock : When measuring the cost of capital, many companies measure the cost of the common stock in the company. However, does common stock have a cost when there is no obligation to pay the stockholders except upon liquidation of the company?

Weighted-average interest rate used interest capitalization : Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,824,000 on March 1, $1,212,000 on June 1, and $3,057,100 on December 31.

Sting corporation taxable income : Based on this information, what is Sting Corporation's taxable income as would be shown on Schedule M-1 of its corporate tax return?

Preliminary financial statements for black co : The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 20X1 prior to Black's acquisition of Blue.

User Account

All Pages