Use afn equation to forecast broussard skateboard fund

Assignment Help Financial Accounting
Reference no: EM132972938

Problem 1: Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2019 to $10.75 million in 2020. Its assets totaled $5 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, 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 7%, and the forecasted payout ratio is 65%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.

Reference no: EM132972938

Questions Cloud

Explain the possible reasoning behind the advice : When IFRS 15/AASB 15 Revenue from Contracts with Customers was released, Explain the possible reasoning behind the advice above.
Calculate the total amount that peter must save : Calculate the total amount that Peter and Blair must save if they wish to completely fund their income? shortfall, assuming a 2 percent inflation rate
Making the appropriate entries in the general journal : Record the following transactions by making the appropriate entries in the general journal. Apr 2 Write a $300 check to establish a petty cash fund
What is the nominal annual interest rate : If you are able to withdraw a lump sum of $20,585 today in return of these 24 future deposits, what is the nominal annual interest rate (APR) you are earning
Use afn equation to forecast broussard skateboard fund : Broussard is already at full capacity, so its assets must grow. Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
What are projected spontaneous liabilities for smiley corp : Smiley Corporation's current sales. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities?
Analysis of loan demand from the lender point of view : Analysis of loan demand from the lender's point of view using credit analysis the five Cs (5 Cs of credit analysis) as a guide in deciding whether to lend!
Provide the workings and journal entries for impairment loss : Provide the workings and journal entries for the impairment loss of the division assuming that the fair value of the land is: $70,000
What is gift-adjusted taxable estate value : What is gift-adjusted taxable estate value? Morgan, a widow, recently passed away. The value of her assets at the time of death was $8,965,000.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How fluent do think are in the food associate

How does Kothari's essay challenge your preconceived notions about India and Indian food? How "fluent" do you think you are in the food associate

  Payback period and the internal rate of return for project

Faster Manufacturing Company is evaluating a capital project that requires an initial investment of $283,000. Managers estimate that for the next 12 years, the project will result in a $200,000 increase in annual cash inflows and a $150,000 increase ..

  What is the amount of the initial cash flow for expansion

Jamestown Ltd. currently produces boat sails and is considering expanding its operation. What is the amount of the initial cash flow for this expansion project?

  Prepare a report paper about ford motor company sec ten-k

Prepare a report paper about Ford Motor Company SEC 10-K. Post the name of your company in the SEC 10-K company in the week 1 Discussion.

  Why visual aids like charts help the user understand data

Why visual aids like charts help the user understand data. Also, take some time and examine how text size, color, and other design elements could help

  The loan is secured by inventory and accounts

1.You have been engaged to audit the ?nancial statements of Quinn Corporation for the year ended December 31, 2010. During the year Quinn obtained a long-term loan from a local bank. The ?nance terms are as follows: 1. The loan is secured by invento..

  What would report total stockholders equity of

common stock $18,000, and Retained earnings $40,000. A balance sheet prepared on December 31, 2019 would report total stockholders' equity of

  Why the four financial statements critical for accountants

Why the four financial statements critical for accountants and nonaccountants to understand. discuss whether you agree or disagree

  What is the payout ratio for blue

What is the payout ratio for Blue? Assume that all balance sheet amounts represent average balance figures. Number of shares of common stock 5600

  Find the book value at December

The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining-balance method, find the book value at December

  How much money will there be in Hana education fund

If funds, contributions and government grants, are deposited into the RESP at the beginning of the year, how much money will there be in Hana's education fund

  What is cost of goods available for sale

Cost of goods sold for the year was $300,000. CBC uses a perpetual inventory system. What is cost of goods available for sale

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