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anzhelika [568]
3 years ago
10

Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2019 to $10.75 million in 2020. Its assets tot

aled $2 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, 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 45%.
Required:
Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
Business
1 answer:
Sonbull [250]3 years ago
4 0

Answer:

$236,500

Explanation:

Using the AFN equation to forecast Broussard's additional funds

Sales expected in 2019 2,150,000

( 8,600,000* .25)

After-tax profit margin 430,000

(10,750,000*4%)

Dividend payments 193,500

[$430,000 * 45%]

Addition to retained earnings $236,500

[$430,000 - $193,500]

Therefore forecast Broussard's additional funds needed for the coming year will be $236,500

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Answer:

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Explanation:

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Students whose family income is less than Rs.2.00 lakhs per annum from all sources are eligible. Total income from all sources of the employed candidates  or  his/her  parents/guardians,  shall  not  exceed Rs.2.00  lakhs  per  annum. (Two hundred thousand rupees per annum)

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8 0
3 years ago
Which of the following is true of accrual basis accounting and cash basis​ accounting? A. Cash basis accounting records all tran
Fed [463]

Answer: Option C is true about Accruals basis

Explanation:

Cash basis states that transactions are only recognized when cash is received and paid. Some of the short comings of the cash basis was it didn’t regard the period in which transactions occured, etc

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Option 1 is wrong because cash basis only records cash transactions.

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8 0
3 years ago
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dybincka [34]

Answer:

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3 years ago
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Svetllana [295]
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6 0
3 years ago
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Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25%
kondaur [170]

Answer:

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Month 1              Month 2               Month 3                 Month 4

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Calculation for receipts in Month 4:

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8750   25% in month following sales (50000*70%*25%)

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<em>36,230</em>

<em></em>

<em>I hope I made myself clear buddy.</em>

<em>Best of Luck.</em>

6 0
3 years ago
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