Use the afn equation to forecast additional funds

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Reference no: EM13977843

Skateboard sales are expected to increase by 15% from $8million un 2013 to 9.2million in 2014. It assets totaled $5million at the end of 2013. We are already at full capacity, so the assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4million, $450,000 accounts payable, $500,000 notes payable and $450,000 of accruals. After tax profit margin is forecasted at 6%, and forecast payout ratio is 40%. Use the AFN equation to forecast additional funds needed for the coming year?

Reference no: EM13977843

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