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    Additional funds (AFN)

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    Year Ended - Balance Sheet ($1,000s)

    Cash

    20

    Accounts Payable

    20

    Accounts Receivable

    20

    Notes Payable

    40

    Inventory

    20

    Long Term Debt

    80

    Fixed Assets

    180

    Common Stock

    80

    Retained Earnings

    20

    Total Assets

    240

    Total Liabilities and Equity

    240

    Sales for the year just ended were $400, and fixed assets were used at 80% of capacity, but its current assets were at optimal levels. Sales are expected to grow by 10% next year, the profit margin is 5% and the dividend payout ratio is 60%. How much additional funds (AFN) will be needed?

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    https://brainmass.com/business/finance/additional-funds-afn-302901

    Solution Preview

    Year Ended - Balance Sheet ($1,000s)

    Cash

    20

    Accounts Payable

    20

    Accounts Receivable

    20

    Notes Payable

    40

    Inventory

    20

    Long Term Debt

    80

    Fixed Assets

    180

    Common Stock

    80

    Retained Earnings

    20

    ...

    Solution Summary

    Response provides steps to compute the additional funds (AFN)

    $2.19

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