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Zanzabum
3 years ago
11

Fixed and current assets are fully utilized, and the sales/assets and sales/spontaneous liabilities ratios will remain constant.

Next year you expect sales to increase by 50 percent. You also expect to retain $2,000 of next year's earnings within the firm. What is next year's additional external funding requirement, i.e., what is your firm's AFN?
Business
1 answer:
VladimirAG [237]3 years ago
8 0

Answer:

$4,500

Explanation:

AFN=Projected increase in assets – spontaneous increase in liabilities- any increase in RE

Fixed asset of 10,000 -3,500- 2,000

= $4,500

Therefore the next year's additional external funding requirement will be $4,500

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The official currency of Canada is the Canadian dollar (sign: $; code: CAD; French: dollar canadien). There is no standard disambiguating form; nevertheless, prominent style guides frequently recommend the abbreviation Can$ to distinguish it from other dollar-denominated currencies. It is abbreviated with the dollar sign $. There are 100 pennies in it.

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