ABC Company is planning its operations for next year, and as its CFO, you will need to forecast the company’s additional
Posted: Thu Apr 28, 2022 1:35 pm
ABC Company is planning its operations for next year, and as its
CFO, you will need to forecast the company’s additional funds
needed (AFN) based on the following data. Dollars are in
millions.
Last year’s sales =
$437
Last year’s
accounts payable = $55
Sales growth rate =
30%
Last year’s notes payable = $50
Last year’s total assets = $517
Last year’s accruals =
$30
Last year’s profit margin =
5.25%
Target payout ratio = 60%
Your company is operating at full capacity. Based on the AFN
formula and the Percentage of Sales method, what is the AFN for the
coming year? Round your answer to two decimal places of
dollar, but ignore dollar and millions, e.g., xxx.xx. (Hint: Use
the AFN General Formula in Financial Forecasting.)
CFO, you will need to forecast the company’s additional funds
needed (AFN) based on the following data. Dollars are in
millions.
Last year’s sales =
$437
Last year’s
accounts payable = $55
Sales growth rate =
30%
Last year’s notes payable = $50
Last year’s total assets = $517
Last year’s accruals =
$30
Last year’s profit margin =
5.25%
Target payout ratio = 60%
Your company is operating at full capacity. Based on the AFN
formula and the Percentage of Sales method, what is the AFN for the
coming year? Round your answer to two decimal places of
dollar, but ignore dollar and millions, e.g., xxx.xx. (Hint: Use
the AFN General Formula in Financial Forecasting.)