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7 Feb 2018
Clayton Industries is planning its operations for next year, andRonnie Clayton, the CEO, wants you to forecast the firm'sadditional funds needed (AFN). The firm is operating at fullcapacity. Data for use in your forecast are shown below. Based onthe AFN equation, what is the AFN for the coming year? Dollars arein millions.
Last year's sales = S0 $350 Last year's accounts payable $40
Sales growth rate = g 30% Last year's notes payable $50
Last year's total assets = A0* $500 Last year's accruals $30
Last year's profit margin = PM 5% Target payout ratio 60%
a. $102.8
b. $108.2
c. $113.9
d. $119.9
e. $125.9
Please shown work
Clayton Industries is planning its operations for next year, andRonnie Clayton, the CEO, wants you to forecast the firm'sadditional funds needed (AFN). The firm is operating at fullcapacity. Data for use in your forecast are shown below. Based onthe AFN equation, what is the AFN for the coming year? Dollars arein millions.
Last year's sales = S0 $350 Last year's accounts payable $40
Sales growth rate = g 30% Last year's notes payable $50
Last year's total assets = A0* $500 Last year's accruals $30
Last year's profit margin = PM 5% Target payout ratio 60%
a. $102.8
b. $108.2
c. $113.9
d. $119.9
e. $125.9
Please shown work
Irving HeathcoteLv2
8 Feb 2018
