Firm’s Additional Funds Needed Assignment | Homework For You
Fuzzy Button Clothing Company reported sales of $890,000 at the end of last year; but this year, sales are expected to grow by 7%. Fuzzy Buttonexpects to maintain its current profit margin of 23% and dividend payout ratio of 30%. The firm’s total assets equaled $425,000 and were operated at full capacity. Fuzzy Button’s balance sheet shows the following current liabilities: accounts payable of $75,000, notes payable of $35,000, and accrued liabilities of $75,000. Based on the AFN (Additional Funds Needed) equation, what is the firm’s AFN for the coming year?
O O 0 0 -$160,884 -$140,774 -$134,070 -$154,181Get Finance homework help today