Elemental Data from Elemental\'s 2016 Income statement&balance; sheet and 2017 s

Question

Elemental Data from Elemental's 2016 Income statement&balance; sheet and 2017 sales forecast are below Actual YE: 2016 Forecast: 2017 Sales Net Income, Equity Dividend Payout $3,500 9% . S315-t, Sales growth rate 45% 0°-- 30% Actual YE: 2016 Actual YE: 2016 Cash Acts Receivable Inventories Net Fixed Assets $100 390 350 1250 Acts Payable Notes Payable Accruals LT Debt Common Stock Retained Earnings Total Liab & Equity$2,090 $145 155 215 520 175 880 Total Assets $2,090 Elemental anticipates no change in its operating margin and dividend payout rate. Elemental's bank ha a) Forecast the sales, net income, and the balance sheet using a percentage of sales approach. What is Elemental's need for external funds (EFN) in the coming year, 2017? 2 a EFN $

Explanation / Answer

AFN= Ao* ?S/So- Lo * ?S/ So - S1 * PM * b Ao= $                                                 2,090.00 Lo= $                                                     360.00 So= $                                                 3,500.00 S1= $                                                 5,075.00 ?S= $                                                 1,575.00 ?S/So= 0.45 PM= 9% b= (1-.30)=70% AFN=$2090*.45-360*.45-5075*9%*70% AFN= $                                                     458.78 Lo=(Accounts Payable + Accruals) Accounts Payable $                                                     145.00 Accruals $                                                     215.00 Lo= $                                                     360.00

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