Use the afn equation to forecast the additional funds

Assignment Help Financial Management

Reference no: EM131459797

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $2 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 5%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.

Reference no: EM131459797

Questions Cloud

Firm minimizing the long-run cost of production : The firm is currently production 1000 units of output with K = 10 and L = 2. A this mixture of inputs, the MRTS is 8. The cost of labor is 8 and the cost.

Describe the four sales channels : Describe the four sales channels. Over-the-counter (retail) selling takes place in a retail location and usually involves providing product information.

Identify the modern portfolio theory : you will examine international markets and the risk/reward benefits of holding foreign securities in an investment portfolio. You will identify the modern portfolio theory (MPT) concepts that lend support to investing in foreign markets.

Describe the major trends in personal selling : Describe the major trends in personal selling. Companies are turning to relationship selling, consultative selling, and team selling. Relationship selling.

Use the afn equation to forecast the additional funds : Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year.

Describe and evaluate what chares schwab is doing : How might the company's culture of not buying into hype and not taking exercise risks affects its organizational structure design?

Calculate the value of a bond that matures : Calculate the value of a bond that matures in 11 years and has a $1,000 par value.

Write down your observations on success of technical aspects : Write down your observations and comment on the success of the technical aspects of the production. Lights, sound, costumes, set design.

Data and layout file structure : This is an array of data, make sure that your output JSON file accurately represents this fact. The data should not just be a bunch of JSON objects in a file with no structure.

User Account

All Pages