5. In your internship with Lewis, Lee, & Taylor Inc. you have been asked to fore

Question

5. 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?

$200,000

$50,000

40%

$15,000

$135,000

$20,000

20.0%

25.0%

Last year's sales = S0

$200,000

Last year's accounts payable

$50,000

Sales growth rate = g

40%

Last year's notes payable

$15,000

Last year's total assets = A0*

$135,000

Last year's accruals

$20,000

Last year's profit margin = PM

20.0%

Target payout ratio

25.0%

Explanation / Answer

i think that

e. -$14,440

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