WorldTrans Industries is planning its operations for next year. 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? Dollars are in millions.Last year's sales = S0$350 Last yr's accounts payable$40Sales growth rate = g30% Last yr's notes payable$50Last year's total assets = A0*$460 Last yr's accruals$30Last year's prof margin = PM5% Target payout ratio60%Group of answer choices$87.4$120.8$90.6$124.1$107.9

AFN is the concept used in Business which are looking to expand its operations and influence. When a…

Answered: WorldTrans Industries is planning its…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 10P

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WorldTrans Industries is planning its operations for next year. 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? Dollars are in millions.

Last year's sales = S₀	$350	Last yr's accounts payable	$40
Sales growth rate = g	30%	Last yr's notes payable	$50
Last year's total assets = A₀^*	$460	Last yr's accruals	$30
Last year's prof margin = PM	5%	Target payout ratio	60%

Group of answer choices

$87.4

$120.8

$90.6

$124.1

$107.9

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