In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales = So S200,000 Last year's accounts payable S50.000 Sales growth rate g 40% Last year's notes payable S15,000 Last year's total assets = AO S165,000 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0% Select the correct answer. a- $4,090 b. - 54,060 C- S3,940 d. - $4,030 e. - $4,000
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- Dynabase Tool has forecast its total funds requirements for the coming year as shown in the following table. picture a. Divide the firm’s monthly funds requirement into (1) a permanent component and (2) a seasonal component, and find the monthly average for each of these components. b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) an aggressive funding strategy and (2) a conservative funding strategy. Assume that, under the aggressive strategy, long term funds finance permanent needs and short-term funds are used to finance seasonal needs. c. Assuming that short-term funds cost 5% annually and that the cost of longterm funds is 10% annually, use the averages found in part a to calculate the total cost of each of the strategies described in part b. Assume the firm can earn 3% on any excess cash balances. d. Discuss the profitability–risk trade-offs associated with the aggressive strategy and those associated with the…Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year’s sales P200,000 Last year's accounts payable P50,000 Sales growth rate 40% Last year's notes payable P25,000 Last year’s current assets P65,000 Last year's accruals P20,000 Last year’s noncurrent assets P70,000 Target plowback ratio 75.0% Last year’s profit margin 20.0% A. -P54,000 B. -P16,000 C. -P44,000 D. -P40,000 E. -P50,000Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year’s sales P200,000 Last year's accounts payable P50,000 Sales growth rate 40% Last year's notes payable P25,000 Last year’s current assets P65,000 Last year's accruals P20,000 Last year’s noncurrent assets P70,000 Target plowback ratio 75.0% Last year’s profit margin 20.0%
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- Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the retention ratio from 90% that was used in the past to 50%, which the firm's investment bankers have recommended. Seventy-five percent of the total assets are considered variable. Based on the AFN equation, by how much would the AFN for the coming year change if Jonson, Inc. decreased the retention from 90% to the new level? All pesos are in millions. Last year’s sales P300.0 Last year’s accounts payable P40.0 Sales growth rate 15% Last year’s notes payable P10.0 Last year’s total assets P500.0 Last year’s accruals P20.0 Last year’s profit margin 15.0% Initial retention…Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the retention ratio from 90% that was used in the past to 50%, which the firm's investment bankers have recommended. Seventy-five percent of the total assets are considered variable. Based on the AFN equation, by how much would the AFN for the coming year change if Jonson, Inc. decreased the retention from 90% to the new level? All pesos are in millions. Last year’s sales P300.0 Last year’s accounts payable P40.0 Sales growth rate 15% Last year’s notes payable P10.0 Last year’s total assets P500.0 Last year’s accruals P20.0 Last year’s profit margin 15.0% Initial retention…You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 80%, which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions. Last year's sales = S0 $300.0 Last year's accounts payable $50.0 Sales growth rate = g 40% Last year's notes payable $15.0 Last year's total assets = A0* $500 Last year's accruals $20.0 Last year's profit margin = PM 20.0% Initial payout ratio 10.0% Select the correct answer. a. $62.1 b. $61.0 c. $58.8 d. $59.9…