ri's dive shop had the following 2019 results: • • Sales - $7,200 Costs - $6,100 Assets - $18,000 Debt-$8,000 Equity - $10,000 orecasted sales for 2020 are $8,500. There are no taxes. Assets and costs are proportional sales. Debt and Equity are not. The retention rate is 100%. What is the AFN (additional unds needed) in 2020 to support forecasted sales of $8,500? (Hint: Construct the 2020 alance sheet and find the AFN required to make the balance sheet balance. Also, assume pontaneous liabilities are unchanged from 2019 to 2020.)

ri's dive shop had the following 2019 results: • • Sales - $7,200 Costs - $6,100 Assets - $18,000 Debt-$8,000 Equity - $10,000 orecasted sales for 2020 are $8,500. There are no taxes. Assets and costs are proportional sales. Debt and Equity are not. The retention rate is 100%. What is the AFN (additional unds needed) in 2020 to support forecasted sales of $8,500? (Hint: Construct the 2020 alance sheet and find the AFN required to make the balance sheet balance. Also, assume pontaneous liabilities are unchanged from 2019 to 2020.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10P

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