Broussard Skateboard’s sales are expected to increase by 25% from $7.4 million in 2016 to $9.25 million in 2017. Its assets totaled $3 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, 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 75%. Use the AFN equation to forecast Broussard’s additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.
Skateboard’s sales
Get your custom paper done at low prices
275 words/page
Double spacing
Free formatting (APA, MLA, Chicago, Harvard and others)
12 point Arial/Times New Roman font
Free title page
Free bibliography & reference
TESTIMONIALS
What Students Are Saying
Outstanding, thank you very much.
Awesome. Will definitely use the service again.