1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Umnica [9.8K]
3 years ago
7

AFN equation Broussard Skateboard's sales are expected to increase by 15% from $7.6 million in 2016 to $8.74 million in 2017. It

s assets totaled $2 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations. $
Business
1 answer:
nata0808 [166]3 years ago
5 0

Answer:

$7,680

Explanation:

Assets totaled ($2 million ×15%) $300,000

Less spontaneous liabilities affected by sales

($450,000 accounts payable+$450,000 accruals) ( $900,000×15%) ($135,000)

Less Sales increased

($8,740,000×0.04×0.45) $157,320

Addition funds needed $7,680

Or

AFN =

($2,000,000×15%-$900,000×15%×$8,740,000×0.04×0.45)

=$7,680

Therefore the forecast Broussard's additional funds needed for the coming year will be $7,680

You might be interested in
C. Forex trading is a very popular investment in Malaysia due to low barriers of entry. There are also many online trading platf
frez [133]

Answer:

what that this answer ⁉️

5 0
2 years ago
In July 2012, a small chocolate factory receives a large order for chocolate bars to be delivered in November. The spot price fo
Anettt [7]

Answer:

$24,530, $23,530

Explanation:

Incomplete word <em>"and if the spot price in September proves to be $2,300."</em>

<em />

Note that Call options will be exercised only if the price on expiry is greater than strike price

Strike price = $2400

Premium paid = $53 for each contract, so the total premium paid = $530 for 10 contracts

<u>CASE 1</u>

Price = $2600

As price on expiry=2600 > Strike price=2400

Call option will be exercised.

Company will pay = $2400 * 10+530 = $24,530

<u>CASE 2</u>

Price = $2300

As price on expiry=2300 < Strike price=2400

Call option will not be exercised and will purchase from open market

Company will pay = $2300 * 10+530 = $23,530

4 0
3 years ago
According to the __________, companies go through long, simple periods of environmental stability, followed by short, complex pe
valina [46]
I really don’t know sorry for this answer
4 0
3 years ago
Stock R has a beta of 2.5, Stock S has a beta of 0.55, the required return on an average stock is 13%, and the risk-free rate of
avanturin [10]

Answer:

19.50%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For Stock R

= 3% + 2.5 × (13% - 3%)

= 3% + 2.5 × 10%

= 3% + 25%

= 28.00%

For Stock S

= 3% + 0.55 × (13% - 3%)

= 3% + 0.55 × 10%

= 3% + 5.5%

= 8.50%

The difference would be

= 28% - 8.5%

= 19.50%

3 0
3 years ago
Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p
KonstantinChe [14]

Answer:

C. Scenario Analysis.

Explanation:

As Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales price, and the cost estimates. The type of analysis that Jamie is doing is best described as scenario analysis. Scenario analysis is basically conducted to know to estimate the unfavorable events development in the market and within the firm as well. It is applied to know about the worst possible situation which can happen and how it can effect the market as well as organization.

8 0
3 years ago
Other questions:
  • On January 1, Year 1, Big Co. enters into a contract with a customer to build a bridge on the customer’s land for $2,500,000. Th
    13·1 answer
  • 1-Which of the following is a trait that is shared by managers who are adept in the organizing function?
    9·1 answer
  • Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type
    10·1 answer
  • What is product market?
    5·1 answer
  • A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier in a country, was changing its name to M
    5·1 answer
  • A price support is a type of _____.
    5·2 answers
  • Find the interest earned on invested for years at ​% interest compounded as follows. a. Annually b. Semiannually​ (twice a​ year
    7·1 answer
  • Differential costs ______. Multiple choice question. are always variable costs include all costs related to a decision can be fi
    7·1 answer
  • What do you call collections of stocks and bonds that are traded on securities exchanges but themselves are traded more like ind
    7·1 answer
  • what is the producer surplus if there is a $5 per unit transaction cost? (do not include the dollar sign $ in your answer)
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!