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H6.
Java Company is planning its operations for next year, and as its CFO, you will need to
Last year’s sales = $415 Last year’s accounts payable = $50
Sales growth rate = 30% Last year’s notes payable = $50
Last year’s total assets = $595 Last year’s accruals = $30
Last year’s profit margin = 5.31% Target payout ratio = 60%
Your company is operating at full capacity. Based on the AFN formula and the Percentage of Sales method, what is the AFN for the coming year?
Group of answer choices
$142.20
$141.36
$143.04
$144.53
$145.38
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Solved in 3 steps
- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Company is planning its operations for next year, and as its CFO, you will need to forecast the company’s additional funds needed (AFN) based on the following data. Dollars are in millions. Last year’s sales = $364 Last year’s accounts payable = $58Sales growth rate = 30% Last year’s notes payable = $50Last year’s total assets = $548 Last year’s accruals = $30Last year’s profit margin = 5.32% Target payout ratio = 60% Your company is operating at full capacity. Based on the AFN formula and the Percentage of Sales method, what is the AFN for the coming year? Round your answer to two decimal places of dollar, but ignore dollar and millions, e.g., xxx.xx. (Hint: Use the AFN General Formula in Financial Forecasting.) Answer:Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at full capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Last year's sales = S0 $365,000 Last year's accounts payable $40,000 Sales growth (ΔS) $31,000 Last year's notes payable $10,000 Last year's total assets = A0* $203,000 Last year's accruals $10,000 Last year's profit margin = PM 0.75 Target payout ratio 0.6
- 1. Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year’s sales P200,000 Last year's accounts payable P50,000 Sales growth rate 40% Last year's notes payable P25,000 Last year’s current assets P65,000 Last year's accruals P20,000 Last year’s noncurrent assets P70,000 Target plowback ratio 75.0% Last year’s profit margin 20.0% Group of answer choices -P50,000 -P16,000 -P54,000 -P44,000 -P40,000 2. Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below.…Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales P200,000 Sales growth rate 40% Last year's current assets 65,000 Last year's noncurrent assets 70,000 Last year's profit margin 20.0% L last year's accounts payable P50,000 Last year's notes payable P25,000 Last year's accruals P20,000 Target plowback ratio 75.0% choices: -44,000 -50,000 -54,000 -16,000 -40,000 Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the retention ratio from 90% that was used in the past to 50%, which the firm's investment bankers have recommended. Seventy-five percent of the total assets are considered…Chua Chang & Wu Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales = So $200,000 Last year's accounts payable $50, 000 Sales growth rate = g 40% Last year's notes payable $15,000 Last year's total assets = A0 $127,500 Last year's accruals $20,000 Last year's profit margin = PM 20.0% Target payout ratio 25.0% a. - $19,000 b. -$11,000 c. - $25,571 d. -$7,000 e. - $25,000
- Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year’s sales P200,000 Last year's accounts payable P50,000 Sales growth rate 40% Last year's notes payable P25,000 Last year’s current assets P65,000 Last year's accruals P20,000 Last year’s noncurrent assets P70,000 Target plowback ratio 75.0% Last year’s profit margin 20.0%Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year’s sales P200,000 Last year's accounts payable P50,000 Sales growth rate 40% Last year's notes payable P25,000 Last year’s current assets P65,000 Last year's accruals P20,000 Last year’s noncurrent assets P70,000 Target plowback ratio 75.0% Last year’s profit margin 20.0% use negative sign if negative2. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = Sp $350 Last yr's accounts payable $40 Sales growth rate = g 30% Last yr's notes payable $50 Last year's total assets = $360 Last yr's accruals $30 Last year's prof margin = PM 5% Target payout ratio 60% a. $67.0 b. $78.7 c. $63.9 d. $77.9 e. $91.1
- Chua Chang & Wu Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? $200,000 40% $127,500 20.0% Last year's sales = So Sales growth rate=g Last year's total assets = Ao Last year's profit margin = PM -$11,000 O O O O O a. b.-$25,571 c.-$7,000 d.-$25,000 e. -$19,000 Last year's accounts payable Last year's notes payable Last year's accruals Target payout ratio $50,000 $15,000 $20,000 25.0%Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last yr's accounts payable $40 Sales growth rate = g 30% Last yr's notes payable $50 Last year's total assets = A0 * $360 Last yr's accruals $30 Last year's prof margin = PM 5% Target payout ratio 60% a. $67.0 b. $63.9 c. $91.1 d. $77.9 e. $78.746. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.Last year's sales = S0 $350 Sales growth rate = g 30% Last year's total assets = A*0 $580 Last year's profit margin = M 5% Last year's accounts payable $40 Last year's notes payable $50 $500 Last year's accruals $30 Target payout ratio 60%a. $139.6b. $130.9c. $143.9d. $120.9
